The 24-year-old singer was criticised by some for being 'too distracted' with her personal life and for turning up late for a number of rehearsals, reported Daily Mirror.
"Simon has always like to change things every year and Tulisa is going to pay the price for that. She wasn't as committed last year as when she won with Little Mix in 2011 and someone has to exit to freshen the series up," a source said.
Contostavlos's exit not expected to be the only change on the show.
Take That star Gary Barlow also suggested he had enough of the show at the end of the last series, although ITV hope to tempt him back again.
Singer Nicole Scherzinger is believed to be the only one with a guaranteed place after winning the 2012 series with James Arthur.