X Factor finalist Katie Waissel collaborated with David Reed on a song for his album
The blonde worked as her alter ego Lola Fontaine on single Moving Mountains with US musician David Reed.
His album The Private Life Of David Reed was released by Chamberlain Records last week in America.
‘We were unaware of this until today,’ says an X Factor spokesman.
According to show rules, contestants aren’t allowed to have existing record contracts.
‘As it’s simply a duet on another person’s album there is no reason it would affect Katie‘s place in the show,’ a source tells The Sun.
X Factor lawyers have previously helped Katie, 24, get out of a deal with Chamberlain.
She recorded an album for them while living in the States but it was never released.