Music Week understands that Quest has now been given the option to take on any contestants who make it through the audition and judges house stages to the series' live finals.
Sources suggest that Lucy Spraggan (pictured) and other entrants now in the early stages of the competition have temporarily dropped any previously associated representation.
Previous X Factor finalists - including One Direction, Leona Lewis and Olly Murs - have tended to sign with Modest Management after appearing on the show.
Pick up today's Music Week magazine for a full report on Quest, Spraggan and the new series of X Factor.
CLARIFICATION: A Live Nation FY financial filing from February 2012 said that the promoter's Artist Nation division had "acquired a 50% interest in Quest Management (UK) Limited". Music Week reported this relationship as presented in today's issue.
However, Scott Rodger has since told MW that Quest is not a Live Nation subsidiary, and that the 10-K filing contained inaccuracies.
He said in a statement: "In March of last year I entered into a venture with Front Line Artist Management Limited, a UK company, who acquired a 50% interest in Quest Management (UK) Limited.
"Quest is not a subsidiary of Front Line Artist Management Limited or any division of Live Nation."
by Tim Ingham