Music superstar Katy Perry is walking away from American Idol for both professional and personal reasons – we can reveal.

Perry will step down as judge after seven seasons as ABC bosses are not raising her pay packet of $30m and her hope to increase her family, claims an insider. Perry also plans to release a new album and perform live in the next couple of years, which would be curtailed by filming schedules.

The fireworks star shocked fans on Monday’s Jimmy Kimmel Live! when she announced her departure from the huge reality series. She said: “I think this probably will be my last show, my last season for Idol,'” she said, responding to a question from Jimmy Kimmel about how long she plans to stay on Idol”, and added: “I feel like I need to go out and feel that pulse to my own beat.”

A source who works as a consultant on major network shows for ABC revealed: “There are three factors at play centered around her deal and her family.

“Katy enjoyed the best deal for reality in TV, worth around $30m a year. It madd her the (highest female star for reality and entertainment. But ABC do not want to up it after five years of increases. There is no wiggle room as the parent company Disney looks to be cost effective and keep spending down for the next couple of years.

“That edict comes from the very top. So Katy was advised the deal is the same and you are welcome to continue. ABC bosses know she is the one who draws the eyes to the show, but she also the most expensive.”

The source continued: “Katy has always told her friends that having a bigger family has been a dream. She is 40 in the fall and loves her blended harmonious family with Orlando and his ex Miranda Kerr. But she would like a little sibling for Daisy.

“She came from a family with a sister and really felt that aided her childhood and growing up experience. She and Angela remain tight to this day.

“The other thing is that Katy loves how Orlando is such a super dad to his children. That has made her love him even more. She has learned from him how to balance work and personal time…one could almost argue that he has helped him really find a balance in her life because of his influence.

“And let’s make this clear Katy is a really hands on mum, who likes to be there for breakfast and bed time for Daisy. Being away from TV recordings increases that time.”

Last year, Perry finished her Play residency at Resorts World in Las Vegas after a two-year sell-out run. Fans last heard original tunes on her studio album Smile, which debuted in August 2020.

The source added: “After her Play Residency ended in Vegas last year two things happened. Firstly she told people she needed a rest and wanted to get back to writing, and make an album. But also it prompted other casinos to try and lure her to their places for shows. The Sphere was interested in her, but no formal discussions took place. She knows that a US tour would make her around $5m a night – a fee which only The Sphere could match on the Strip.

“It has been a while since she did a tour, but with her reputation she an pick and choose where she would play and when. It would be a tour on her terms.”

During the Kimmel interview Perry added that Richie and Bryan “know” in that they were aware she has “some things planned for this year,” including performing at the iconic Rock in Rio music festival in Brazil.