Miley Cyrus Is ‘1st Choice’ to Replace Katy Perry on ‘American Idol’ – but She Won’t Come Cheap!

Miley Cyrus is a hot favorite to replace her old friend Katy Perry on American Idol , but a source connected to the franchise says money is a main sticking point as cheapskate bosses don’t want to pay top dollar for their No. 1 choice.

“The big issue hanging over Katy’s mostly successful run on Idol has been the enormous paycheck she managed to negotiate from the start of her judging term that only increased incrementally in the years since,” a source exclusively tells Life & Style . “With Katy finally getting back to making music full-time, Disney and ABC are looking to replace her with just as famous a name at a somewhat discounted price.”

While Miley, 31, is at the top of the network’s list , other names like Meghan Trainor and Jelly Roll have also been tossed around. “Nobody expects Miley to do this cheaply, but nobody at the network wants to pay Katy prices for Katy’s replacement,” the source explains. “The show absolutely has to get a little bit cheaper no matter who joins the cast because the ratings are slowly declining. That’s just the fact of the matter.”

However, securing the “Can’t Be Tamed” singer, who previously served as a coach on two seasons of The Voice , isn’t out of the question. “Miley really does love the competition space,” the insider says. “She has a lot more fun judging and mentoring than she has in her various forays into acting as an adult. And she also knows her fans actually show up to watch her on these shows.”

That loyal fanbase could help Miley get the deal she’s hoping for when it comes to American Idol . “That’s really her secret weapon in extracting a big fee from Disney and ABC,” the insider adds. “Miley’s been in this situation before and she knows how to make it work in her favor. The only thing that’s keeping the two sides apart at the moment is Miley’s fee, but she is absolutely the first choice to replace Katy in this franchise.”

Katy, 39, served as a judge on Idol for seven seasons alongside Luke Bryan and Lionel Richie . Earlier this year, she announced that she would be leaving the show after season 22, which concluded in May.

Luke, 48, recently opened up about the future of Idol in an interview with Billboard , where he admitted, “It’s been interesting. It’s been something Disney [has] been really tight-lipped about with me and Lionel and [host] Ryan [Seacrest]. We currently haven’t heard what the story is on who’s coming back and if Lionel and I are coming back. I think Disney is just trying to figure out what they want to do and we’re just kind of sitting back and waiting until they decide.”

The country singer confirmed that he heard Miley and Meghan’s names as two stars in the running to replace Katy, along with Pink . However, the “Just Give Me a Reason” singer previously admitted that she didn’t feel like she’d do well as a judge. “I don’t like hurting people’s feelings,” she said. “I like my day job.”