AceShowbiz -

Words are circulating that Jay-Z is going to be dismissed from Def Jam before he walks away voluntarily. Bosses at the label reportedly are sick of the rapper's huge demands and are therefore glad to pull him from the position as the CEO.

Island Def Jam executives L.A. Reid and Doug Morris allegedly called Jay-Z's demand "excessive". A source told The Daily News, "He wanted big, big money that was way out of sync with the realities of today's record business. 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 'sacking' may come in line with the expiration of his contract with Def Jam this month. "They are still actively negotiating," an insider said. "The talks will continue when he returns to New York. They still have a ways to go before a decision."

Should the departure really happens, Jay-Z reportedly will sign a new deal with Columbia where girlfriend Beyonce Knowles is.