The music mogul, 51, is already thought to have lined-up a manager for the boys - Zain Malik, Liam Payne, Harry Styles, Louis Tomlinson and Niall Horan.
'He has said he'll sign up One Direction even if they don't win,' says a source.
'He was heard saying in one of their early auditions, "I would sign them now if that was an audition in my office."
'And he's already lined up someone to manage them when the show finishes.'
But a show spokeswoman insists Simon - who is also mentoring Belle Amie - has not made any such decision.
'It's too early for all that,' she tells the Daily Mirror. 'One Direction may fall out of the competition.
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