The pop star wants to focus on her music career and next album instead of continuing her stint on TV, sources told E! News, adding that the news comes after executives had been discussing The X Factor's third-season judging panel over the holidays but Spears wasn't part of the talks.
"Britney loves Simon, she likes Demi Lovato but her thing is music," a source told TMZ.
After Spears finishes up her eighth album, she's reportedly considering going on tour again as well.
While Fox hasn't announced anything publicly, Fox president Kevin Reilly was noncommittal when asked whether Spears would return to the reality singing competition on Tuesday.
"For next year, I don't know," Reilly told reporters, according to E! News.
Reilly did, however, say "yeah" when asked if he actually wanted Spears to come back.
Spears reportedly earned a $15 million paycheck for her second-season The X Factor participation. Sources told Us Weekly last month that Spears was less than enthusiastic on the judging panel and contributed little to the show's entertainment value, which disappointed producers considering she was signed to the expensive contract.
"They paid all that for her to say 'amazing' and offer half-claps," a source told the magazine, suggesting the network would most likely fire the pop star.