Jay-Z looks set to quit Def Jam Recordings.

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The rap megastar’s contract negotiations with the music label, of which he is both president and a major star, have reportedly broken down over his ‘excessive’ demands for ‘big, big, money’.

A source told the New York Daily News: ‘He wanted big, big money from the owners Universal Music and that was way out of sync with the realities of today’s record business.

‘L.A. Reid, the Chief Executive Officer of Island/ Def Jam Records, and his boss Doug Morris have found Jay-Z’s demands excessive in light of the amount of time he’s spent on tour.

‘Everyone knows he’s not around the office much. Everyone at Universal loves him, but they just can’t justify paying him the money he wants when so many people have to be laid off.’

However, friends of Jay-Z – whose current contract expires at the end of the month – slammed reports that he would be leaving Def Jam.

One said: ‘They are still negotiating. The talks continue when he returns to New York. They have a way to go before a decision.’

The ’99 Problems’ singer spent Tuesday evening (04.12.07) in France celebrating his 38th birthday by watching semi-naked women perform at the famous Crazy Horse Paris cabaret club.