Abdul stated: "Yes, it's true; I won't be returning to The X Factor next season. I've learned through my longevity in this industry that business decisions often times overrides personal considerations.
"Simon [Cowell] and I, along with Fox and Fremantle, have been communicating about this for a while now, and I have absolute understanding of the situation.
"Simon is, and will remain a dear friend of mine and I've treasured my experience working this past season with my extended family at Fox and Fremantle.
"I want nothing more than for The X Factor to exceed ALL of their wildest dreams. This truly has been a blessing and I am most grateful."
Speaking of their exits, Cowell said in a statement: "I want to say a massive thank you to Paula, Nicole and Steve for being part of the X Factor last year.
"You do develop friendships with the people you work with and Paula, in particular, is a very close friend and I expect to be working with her on another project in the near future.”
Cowell is confirmed to return to this year's season of The X Factor USA, with music mogul L.A. Reid also expected to make a comeback.