The former N-Dubz star - whose own pop career is flagging after a lacklustre showing for her debut album - is reportedly to be axed from the ITV show.
The talent show had a tough time in the ratings last year with a huge slump in viewers which helped 'Strictly Come Dancing' step out in front in the Saturday night ratings battle.
The first stage of the 'X Factor' final in December had the worst audience since its 2005 equivalent. However, winner James Arthur still achieved huge sales for his debut single Impossible and was the fastest seller of the year.
Tulisa has been with the show for two series but the high profile show has put her relationships in the spotlight. She was also horrified when a "sex tape" emerged which led to a court battle with the former lover who leaked the footage.
Her debut album 'The Female Boss' made it to only number 35 in the charts, despite going to number one with her first solo single Young.
It is not clear whether Gary Barlow will stick with the programme for another year, and it is claimed that there may be pressure on Louis Walsh to go, although Cowell is said to be keen to keep him.
Earlier this week it was reported that Take That star Robbie Williams was being considered for a slot on the judging panel.
The Sun said TV bosses wanted Williams and Barlow to provide "fireworks" on the show, and were also planning to bring back Nicole Scherzinger as a judge.
The pair fell out when Williams quit Take That in 1995, but have since made up and Williams rejoined his bandmates in 2010 for a new album and a string of sell-out concert dates.
A spokesman for 'X Factor' said: "No formal decisions have been made about the panel for this year's series of the X Factor as yet."