The 22-year-old singer was previously rumored to be in talks with Simon Cowell's Syco label, but he has ditched his mentor, reported The Daily Star.
"Cowell will be unhappy about it. But Niall's thrilled. He's been telling pals he is really excited about his new music and this solo deal," a source said.
"It's anyone's guess where this decision leaves One Direction now."
Like Horan and Harry Styles, Liam Payne is also working on his solo album. He has signed a deal with Capitol UK.
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