The Sun reports that the new deal is almost double her original contract, which last year saw her pocket £300,000 after winning the series with Little Mix.
Tulisa is the latest of the judges to agree to sign up for the show, after Gary Barlow and Louis Walsh both signed deals last month.
“Simon wants Tulisa back and she wants to come back, so it’s down to contracts now," a source told the newspaper today. “He’s conscious of the fact she’s had a rubbish time recently with the sex tape thing so he figures getting a new deal sorted will be one less thing for her to worry about.
“Tulisa is in line for a decent bonus. She proved herself on the show and did a great job with Little Mix last year. It might seem a lot of money but it’s a fraction of what Gary Barlow gets and is much lower than what Cheryl Cole — who she effectively replaced.”
According to the newspaper, only Kelly Rowland has yet to agree a deal, but is also "expected" to return this year to complete the panel.
X Factor boss Simon Cowell previously said his "gut feeling" was to keep the panel unchanged despite the dip in ratings last year.
The show was watched around 2 million less viewers than in 2010, but was still the most watched programme of the whole year, beating even the Royal Wedding.
The X Factor 2012 returns to ITV1 in the summer.