The Aussie singer had been signed to Jay Z's Roc Nation company for two years, but it appears the deal has now turned sour for Kylie.
"She thinks they didn't ever understand her as an artist. Her last album was nowhere near as successful as she hoped," a source told The Sun.
"She now wants to go in a different direction."
Kylie's last single 'I Was Gonna Cancel', which peaked at number 5 on the US Hot Dance Club Songs chart and number 59 on the UK Singles chart.
Her album, 'Kiss Me Once', was meant to be Kylie's big comeback after not having released any new records since 2010's 'Aphrodite'.
However, Kylie seems to harbour no bitterness about the end of her partnership with Roc Nation, which also represents Rihanna, Shakira and Calvin Harris.
"I've had an amazing time with Roc Nation and it's been fantastic to team up with them over the last two years," she said in a statement.