Liam Payne was reportedly "quietly dropped" from Universal Music just weeks before his death.
The record label made the decision after disagreements over the music direction for his second album, sources claimed.
Payne, 31, who had fallen from a hotel balcony in Buenos Aires, Argentina, died on impact. After his death, it was revealed that Universal Music was worried the new material wouldn't appeal to fans.
As one source told the Daily Mail, "Liam wanted to make the sort of music he enjoyed but his label believed it wouldn't win over 1D fans so there were disagreements about the way his brand should have been marketed."
A second source added that label budget cuts were a major factor in the dissolution.
The bad online response to Payne's previous work reportedly also played a role in Universal's decision.
Payne reportedly had also felt pressured by his label but was hopeful about the potential success of his second album — especially with how well things were going for his bandmates, Harry Styles included.
When Payne passed away, Niall Horan, in an equally heartfelt tribute to his former One Direction colleague on social media.
"Payne was an amazing friend," Horan said of their memories together. He wrote on instagram, "I'm absolutely devastated about the passing of my amazing friend, Liam. It just doesn't feel real. Liam had an energy for life and a passion for work that was infectious. He was the brightest in every room and always made everyone feel happy and secure.
"All the laughs we had over the years, sometimes about the simplest of things, keep coming to mind through the sadness. We got to live out our wildest dreams together and I will cherish every moment we had forever," he went on.
Universal Music has not yet responded to reports suggesting Payne's departure from the label.
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