The American beauty is having doubts that she can juggle both her singing and judging duties.
Nicole had seemed a dead cert for a return after wowing fans in the last series and had started serious talks with producers.
But the ex-Pussycat Doll is releasing a new album in November on both sides of the Atlantic and will need to be available for promotion.
X Factor chiefs have tabled a “generous” offer - thought to be around £1million - but Nicole has insisted that money is not the sticking point.
She told a pal: “I’m so torn right now. My heart wants me to come back and do the show as I had such a great time last year.
“But my album is coming out and I also need to focus on that.
“I don’t think I can make it work. By trying to juggle the two, one or both will suffer.” Nicole also feared fans would react badly if she did the show then had to jet off to the States midweek for promotional work.
She mentioned negative comments which surrounded former judge Kelly Rowland after her decision to return to LA in 2011, citing a throat infection, which meant she missed some live shows.
Speaking to her confidante, Nicole, who is dating F1 ace Lewis Hamilton, said: “I recall Kelly getting some harsh criticism when she went back to LA and missed a show. I don’t want that to happen to me, as I love working with my acts. That’s what made it so special.”
But friends of the star are advising her to return to the show, claiming she will regret it if she doesn’t.
Show boss Simon Cowell wants the judging line-up to be announced soon to ensure the programme regains its focus. And he said this week that he planned to revamp “every aspect of the show”.
The first round of auditions, which will see wannabes performing for judges without backing music, starts in June, with the show returning in late August or early September.
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