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The 42-year-old star has been told to ‘name his price’ by show bosses who are desperate to win back viewers after last year’s series flopped.
Axing Dermot was one of many changes introduced in a bid to revamp the singing competition, which has been on our screens for twelve years.
But Caroline and Olly struggled to cope with the pressures of presenting the live shows and after a series of on-air mishaps, the pair won’t be returning for the thirteenth series.
Now Dermot - who was earning £1million a series - is set to rake in the cash after being asked back by Simon Cowell.
An insider told The Sun: “Dermot will come back to The X Factor. Talks are under way on his deal but everything is positive.
“Everyone, including Dermot and Simon, has the will to make it work.”
It is expected that Dermot will sign a deal to present the ITV show for another three years.
“You need someone really good who can cope with live TV.”
Since leaving the ‘X Factor’ last year, Dermot has been outspoken about the show, suggesting Simon Cowell should ‘rest’ it for a year and ditch the six-chair challenge.
And at this year’s NTAs he also appeared to have a dig at his former employer, referring to ‘X Factor’ rival ‘Strictly Come Dancing’ as his “new favourite show”.
Simon Cowell responded to the comments, stating: “He’d be fantastic on 'Strictly'. I couldn’t care less if he goes on it.”
Speaking about Dermot’s rumoured return, an ‘X Factor’ spokesman said: “Discussions are ongoing about the new series. Details will be announced in due course.”