The 26-year-old singer was automatically signed to the label after winning 'The X Factor' in 2012 and released his self-titled debut album in 2013.
However, after becoming embroiled in a series of controversies James has now confirmed on his Twitter account he has left Syco.
He tweeted: ''Just to clear things up - I am no longer with Syco. I would like to thank all at the label for making a great record with me ... I now have to move on and do something different - the future is bright! #LOVE (sic)''
James upset Syco bosses on several occasions with his behaviour and online rants.
He was reprimanded in April after unveiling the rap track 'Follow the Leader' - which featured on his mixtape 'All The World's A Stage' - on which he spouted the controversial lyrics: ''Look at what you do to me, I'm crying over stupid s**t, you're such a f**king homophobe, wish I'd never let you in, to think that I was thinking maybe I should let you live, I'm gonna blow up your family like I'm a terrorist.''
At the time, the 'Impossible' hitmaker defended himself for using the sentence ''I'm gonna blow up your family like I'm a terrorist'', insisting the he had written the track from the point of view of a ''demented fan''.
In November 2013, James was also heavily criticised for using the word ''q***r'' in a rap battle and got embroiled in a text and Twitter argument with his fellow 'X Factor' contestant Lucy Spraggan.
In March 2013 - before the release of his mixtape - James likened himself to killer whale Tilikum suggesting he had been exploited like Sea World's captive animal.
Despite his various controversies, Simon Cowell publicly supported James in April and urged him to ''relax'' and concentrate on making music.
He said: ''What I would say to him is to put things into perspective; you won a show, you wouldn't have got a record deal - probably - without the show, you've sold a ton of records, you're famous. Just go in the studio and make a great record. Relax.''
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