Demi Lovato seems to be all set to give up her mentor chair following this season of The X Factor.

Following the first half of season 3 finale of The X Factor, music mogul Simon Cowell confirmed that panelist Demi Lovato will be leaving the show after this season. Cowell also cleared up the speculation on the reason for Lovato's departure.

"Yeah, I think that was always the plan, to be honest with you," Cowell shared right after The X Factor episode on Wednesday night regarding Lovato's departure after this year's season.

The X Factor, which was started in the U.K. by Cowell, has run for three seasons so far in the U.S. and the only artist to return as judge and mentor was Lovato. Mentors for Season 1, Paula Abdul and Nicole Scherzinger and judge for Season 2, Britney Spears only served as mentors for one season each for the show.

Lovato, 21, and Cowell, 54, are famous for their love-and-hate bantering in the U.S. version of Cowell's popular singing franchise. Lovato has not been able to send a member of her team to the finale of both seasons but Cowell emphasizes that Lovato's departure has long since been decided and has been planned from the start.

Cowell further explains that though he enjoys working with the young singer, Lovato is set for a tour next year. So far, he did not disclose any names for a possible replacement but shared that he had "some thoughts" about an artist he might ask to fill Lovato's empty chair on the judges' panel.

The Top 3 for this year's X Factor -- Jeff Gutt (Over 25s), Carlito Olivero (Boys) and Alex & Sierra (Groups) -- competed for the throne on Wednesday night in order to land a recording contract with Syco/Sony Music, Simon Cowell's label. The winner will also get US$1 million as a cash prize.

Though Cowell did not hint at a possible winner for this season, he shared that he was impressed with Gutt's first song choice and Alex & Sierra's last performances.

Demi Lovato also expressed that she was "quite taken" with the couple, whom she had described as "true winners."