The 'Criminal' singer was rumoured to have refused a $10 million (£6.4 million) offer to join the judging panel on the Fox talent competition, after reaching the final stages of contract talks.
Spears is said to have wanted at least a $20 million (£12.8 million) payout to join The X Factor USA. However, Hollywood Life has since claimed that she may yet sign up for the series if she is offered the chance to leave after the first year should she not wish to continue.
"Money is not an issue for the show. As of now, they are looking to pay her $12 to $15 million (£7.7 to £9.6 million) for the first season, with a drastic price hike for a second year based on ratings performance," a source told the publication.
"[Executive producer] Simon Cowell wants at least a two-year commitment, and Britney wants an out clause if she doesn't want to continue after one year of service."
The X Factor producers have been attempting to locate new talent for the judging panel following the axing of Nicole Scherzinger and Paula Abdul after the show's first season.
The second season of The X Factor USA begins in September on Fox. Auditions are underway now, with further details available at www.thexfactorusa.com.
Watch Simon Cowell discussing Britney Spears in an interview below: