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Louis has reportedly decided to instead focus on his record label during One Direction's hiatus, with a source telling The Sun: "Louis loves 'The X Factor' but wants to develop his label further this year and sign more new talent," a source told the tabloid.
Louis enjoyed a successful guest stint on the show last year, when he joined Simon Cowell at Judges' Houses to help him pick his finalists.
He previously admitted that he was interested in joining 'The X Factor' full-time, having found fame as a contestant on the show in 2010.
He told The Sun last month: “We’ve had no official conversation yet. But yeah, I mean, why wouldn’t I?”
Radio Times reported that the pair have "built bridges" in recent times, with her appearing in 'Ant And Dec's Saturday Night Takeaway' skit, 'Who Shot Simon Cowell?'.
An insider told the publication: “Simon and Sharon have always had a bit of a love/hate relationship. Her doing that maybe suggests they’re building bridges.”
Sharon appeared as an original judge on the first four series, before quitting due to a feud with Dannii Minogue during the 2007 run.
She later returned for a one-series comeback in 2013, when she won with contestant Sam Bailey.
An official announcement on the new 'X Factor' line-up is expected before auditions begin filming in the summer.