Dannii Minogue has reportedly agreed to return to The X Factor after signed a new £1million deal.

Throughout the last series, Simon Cowell was rumoured to be planning to dump Dannii from the judging panel of the ITV1 show after Girls Aloud star Cheryl Cole’s successfully joined the team - but by February, he said he was “adamant” that Dannii should return. Last month though, Dannii said she still hadn’t decided whether or not to sign up for another series because after an extended holiday in her native Australia, she was reluctant to return to the UK.

Now the former popstar is said to have signed on for X Factor 7 after producers agreed to a £250,000 pay rise - putting her on par with Cheryl Cole.

A source told the Daily Mail though that it wasn’t just about the money: “Dannii was finally persuaded that the show wanted her.”

Dannii joined the show in 2007 but clashed so fiercely with fellow judge Sharon Osbourne that Sharon cited Dannii as her reason for leaving when she quit the show last year. Dannii was initially said to have similar problems with Sharon’s replacement Cheryl, but they downplayed the rumours as the series went on.

Preliminary auditions for the show are currently underway and the series will start on ITV1 in August.