The 34-year-old catwalk queen was supposed to be entering the house alongside friend and 'X Factor' contestant Rylan Clark, but producers have since decided that the pair are too similar, reported Digital Spy.
"Katie has always been at the top of the list of potential CBB housemates and she was a real candidate this series because her deal with Sky is up. Her exes Alex Reid and Dane Bowers were in one series together, and it made a great talking point - Alex even won the show. But, of course, she was going to be an expensive booking.
"The idea of having Katie and Rylan seemed perfect. They promised late night karaoke sessions and lots of boozy antics. But the bosses had a re-think. They felt that their personalities were so similar, they might risk becoming a turn-off for viewers," a source said.
Clark and Price became friends when the former finished runner-up on her 'Signed By Katie Price' series, which searched for her new protege.