"David was released from our roster," a Jive spokeperson confirmed to the Hollywood Reporter.
Archuleta, 20, has been on Jive records since 2008, when his self-titled debut album went platinum after selling nearly a million units. The pop singer's latest album, "The Other Side of Down," which came out in 2010 sold just over 63,000 copies.
Archuleta appeared on the seventh season of "American Idol," where he lost to David Cook. The season finale logged over 97 million votes, which was the highest amount in the show's history until the following year's finale between Adam Lambert and Kris Allen, which drew 100 million voters.
"Signing a record contract with 19 Recordings/Jive Records is truly a dream come true," Archuleta said in a press release when he first signed the deal. "Being a fan of American Idol since season one and admiring the alumni, I am honored and humbled to be a part of that group. I'm really excited to start working on everything."
In October 2010, Archuleta said that he feared that his new album would not leave a lasting impression.
"That's one of my biggest fears, to not mean anything," Archuleta told USA Today. "I'm always afraid of being left behind... It's not like I want to be remembered, period. I want to be remembered for the right thing."
Archuleta said at the time that The Other Side of Down is "more quirky" and shows his "dorky" side.
Jive Records had no immediate comment on the reports.