5 After Midnight have reportedly been signed by Simon Cowell's record label.
The trio - made up of Kieran Alleyne, Nathan Lewis and Jordan Lee - finished in third in last weekend's X Factor 2016 final.
However it was shockingly close over the weekend with just 4% splitting 5 After Midnight, Saara Aalto and eventual winner Matt Terry at Saturday night's vote freeze.
Now it's claimed that despite missing out on the top two, 5 After Midnight are set to scoop a record deal with Simon Cowell.
A source told the Daily Star on Sunday newspaper: “The boys are overjoyed and can’t believe they are signing to Syco. Simon has been a big fan of 5 After Midnight throughout the series."
The insider added: "Out of all the artists he thinks 5AM have the biggest gap in the market to play with. There are very few boybands around at the moment and even fewer urban boybands who dance.”
As yet there has been no official announcement
The news follows winner Matt NOT signing with Simon's Syco label, instead penning a deal with RCA Records.
The same happened to Matt Cardle who won in 2010, as Simon picked up third placed One Direction instead.
Meanwhile, this year's X Factor runner up Saara is also in talks to pen a record deal with a "major label".
A source close to the Finnish singer said this week: "This week has been a whirlwind for Saara - the interest has been overwhelming in her and she's close to inking a big record deal with a major label."
Before releasing any albums, all three of the finalists will be taking part in the live tour next Spring along with the rest of the top eight acts from the live shows.