Life & Style has learned exclusively that Paula Abdul is not returning to Idol because producers refused to raise her salary!

"Paula had demanded a raise from $8 million to $12 million to stay on as a judge on Idol," an insider close to the show tells Life & Style. "And her management took a tough line with show's bosses and refused to negotiate."

Paula was shocked when Idol executives then failed to raise her $8 million salary. "Paula's managers issued a statement in July saying Paula hadn't been offered a deal at all, which only inflamed the situation," the insider continues. "After that, the relations between both sides deteriorated to the point where Paula's management was slamming the phone down on Idol staff."

Paula is said to be upset because her co-stars, like Simon Cowell and Ryan Seacrest,hold much more lucrative contracts. "Paula's team believes that because Simon, Randy Jackson and Ryan have such great deals, Paula deserved more."

And the whole situation is taking a toll on the former pop star. "Poor Paula has been having daily meltdowns over the negotiations," says the insider, and has been left feeling hurt and abandoned by her Idol colleagues."

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