The 32-year-old pop star, who has been a judge on the ITV talent show since 2008, reportedly told music mogul Simon Cowell about her plans over a Hollywood dinner last week.
Speaking to MailOnline Cheryl said, 'I have had such an amazing experience being a judge on The X Factor. I have learnt so much and enjoyed nurturing talent but I've missed making music and am excited to be recording again.'
She added, 'I want to thank everybody I have worked with along the way, especially Simon who I love to bits. I hope the show continues to produce stars and I wish them all the best.'
And it looks like there are no hard feeling between Cheryl and her boss Simon Cowel either, with him commenting: 'Cheryl and myself spoke about this. I totally understand her commitment to making more records.
'She has been amazing on the show and in the near future we will be working on other things together.'
Last year's juding panel, which featured Cheryl, Nick Grimshaw, Simon Cowell and Rita Ora
Cheryl is currently working on a new album in California, with the support of her rumoured boyfriend Liam Payne.
Despite her decision to quit, a source told The Sun that Cheryl loved working on The X Factor in 2015; 'Last year was one of her favourite series, she had a lot of fun mentoring her groups and enjoyed working closely with the production team on the show.'
It has already been confirmed that Dermot O'Leary will be taking back the reins from Olly Murs and Caroline Flack as host of the show, and that Nick Grimshaw will not be returning as a judge.
The X Factor 2008 with Louis Walsh, Dannii Minogue and Simon Cowell
Cheryl first joined the panel in 2008 and left two seasons later in 2010 after the most successful ratings ever, which saw One Direction take second place to Matt Cardle.
Riding on the success of the 2010 series the Newcastle-born star left the UK version of the show to launch The X Factor USA in 2011, but the position only lasted for several weeks.
Since the show began in 2004, it has seen a host of celebrity faces take on the role of judge – Sharon Osborne, Louis Walsh, Dannii Minogue, Gary Barlow, Tulisa Contostavlos, Kelly Rowland, Nicole Scherzinger, Mel B and Rita Ora.