Morrissey has indeed been dropped by Capitol/Harvest Record. Refuting previous claims suggesting he's still signed to the record label as he still owes them another album, the singer confirmed the split in a statement released via fansite True to You.
"Both Morrissey and Morrissey's lawyer are in possession of email correspondence from Steve Barnett (head of Capitol-Harvest Records), and also from Steve Barnett's personal assistant, both of whom confirm that Capitol-Harvest have ended their relationship with Morrissey," the statement read.
"No recording Agreement with Capitol-Harvest was ever signed by Morrissey, and Morrissey retains full ownership of 'World Peace Is None of Your Business'," it continues.
Reports about Mos being dropped by Harves emerged earlier this month, just a few days after he appeared to criticize the record company in another True to You post. However, the label denied the news and told Billboard he'd still have to release another album under the label before he's allowed to leave.
"Contrary to the assured Billboard report, Capitol-Harvest have very clearly stated that they would have no interest in licensing a second album by Morrissey," the new statement added. "Russells (London), who represent Morrissey, are presently concluding Morrissey's relationship with Harvest Records. Once again, Morrissey is in search of a new label."