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Rapper Jay-Zs contract-renewal negotiations with his record label Def Jam have reportedly broken down.

New York, Dec 9 : Rapper Jay-Z's contract-renewal negotiations with his record label Def Jam have reportedly broken down.

A source has revealed that the reason for the break-up is the rapper's excessive payment demands.

"He wanted big, big money that was way out of sync with the realities of today's record business," the New York Post quoted a source, as saying.

Island/Def Jam CEO L.A. Reid and his boss, Doug Morris, are believed to have found the mogul's demands excessive in light of the time he's been spending on tour.

"People have lost count of how many times he's come out of retirement. Everybody knows he's not around the office much. Everybody at Universal loves him, but they can't justify paying him the money he wants when so many people have been laid off," the source said.

Jay-Z's contract with his record label is said to expire at the end of this month.

However, his pals, who celebrated his 38th birthday in Paris on Dec 5, dismissed all the reports.

"They are still actively negotiating," one pal said.

Another pal said: "The talks will continue when he returns to New York. They still have a ways to go before a decision."

ANI