[Spike]

Dannii Minogue has been given a pay rise by X Factor boss Simon Cowell.

The Aussie singer was the most successful mentor on last year's series, with the final two acts - Leon Jackson and Rhydian Roberts - both coming from her 'Boys' category.

"Dannii will get a pay rise this time," Cowell told The Mirror. "They usually do after the second series - plus she deserves it."

Simon confirmed that Sharon Osbourne and Louis Walsh have also been offered new contracts. However, he admitted that he has not yet spoken to Sharon about rumours that she wants to quit the show - and does not know if she will agree to return.

"Sharon is a handful, but she's what makes the show interesting," he explained. "If someone doesn't want to come back then that's their decision. I'm not going to get into this whole firing thing again after last time."

Cowell also claimed that tension between Sharon and Dannii had provided "great viewing" last year.

"Backstage was the real show - my God, yes," he added. "If they had cameras down there it would be, without doubt, the best show on TV.

"If they both return next series they will have dressing rooms at opposite ends of the corridor and I am buffering them in the middle. But if a fight broke out who knows who would win? I wouldn't like to guess!"

DS