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The singer’s departure from the ITV singing competition comes days after new judge Nick Grimshaw confirmed his decision to leave the show.
The former contestant says he wants to focus on his music career and getting back to performing on stage.
“It’s been one big adventure and I loved every minute of it. But my heart belongs to music and I want to concentrate 100 per cent on making my next album and getting back to performing.”
The ‘Kiss Me’ singer admitted that his commitment to the show last year meant his music took a back seat.
“Now that I’ve started working on my next album I couldn’t see myself having the time to do both.”
Despite Olly’s departure from the show, his boss, Simon Cowell, revealed the singer is set to be back on our TV screens in the future.
“In addition to this we have agreed to work on some other TV projects in the future.”
Last week, Nick Grimshaw confirmed he is leaving the show after just one year as a judge.
Radio 1 Breakfast host Grimmy has insisted it was his decision to leave the ITV singing competition, saying it was ‘very much a once-in-a-lifetime experience’.
Meanwhile, Caroline Flack could also be a casualty of Simon Cowell’s bid to improve the dwindling ratings for the show, which is set for its twelfth series later this year.
Both her and Olly came under fire for a series of presenting mishaps during the last series, with many viewers calling for the return of former host, Dermot O’Leary.
A spokesman for the X Factor said: “Discussions are still going on about the new series of X Factor.”