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Contrary to rumors suggesting that Dr. Luke has signed up to be a judge on "American Idol", it's now reported that he won't join the singing competition series. The Hollywood Reporter learns that his lucrative label deal with Sony Music is one of the reasons why he passes on the gig.

Should Dr. Luke, whose real name is Lukasz Sebastian Gottwald, agree to judge the show, he will help nurture talents for Sony's competitor, Universal Music Group, which holds the exclusive rights to "American Idol" recordings. This way, he would run into a snag with Sony.

A source additionally says that Dr. Luke thinks the "Idol" gig would demand too much of his time and he decides to focus on his artists and the label. "He really loves his artists and wants to build up the label," the source tells THR.

The source adds, "Luke wants to build an entertainment company," and both Dr. Luke and Sony Music CEO Doug Morris realize that taking him out of the Idol running "was the best thing for all parties."

Dr. Luke was first mentioned as a frontrunner for the "Idol" judging stint after negotiations with will.i.am were reportedly stalled due to money issue. The Black Eyed Peas member reportedly has decided to return to "The Voice UK" instead.

Sean "P. Diddy" Combs allegedly has also turned down the offer to be a third judge on "Idol" due to his not-so-good relationship with ex-girlfriend Jennifer Lopez, who is set to return for the 13th installment of the reality singing series. J.Lo is said to be hoping that Justin Bieber's manager Scooter Braun will join her and Keith Urban on the judging panel.