The 19-year-old University of Otago music student qualified for the semifinals of the programme, but was not permitted to continue after this week refusing to sign an exclusive contract.
"I have been advised by the TV company that I will not now be performing in the semifinals of NZGT," she posted on Facebook.
"In order for me to take part in the semifinals of the show I was required to sign contracts that prevented me from performances and other opportunities.
"I truly appreciate everyone's support and kindness, both before and during the show. I also wish the very best of luck to all competitors ..."
She confirmed to the Otago Daily Times yesterday she had withdrawn from the competition, but said she was unable to discuss the situation because of contractual obligations.
Price received a standing ovation from the judges after her rendition of Beyonce's If I Were A Boy, which screened on October 7.
She was widely considered a leading contender in the contest.
She won the TVNZ "Find A Star" competition last year and was a guest artist at the ODT "Big Night In" community concert at Forsyth Barr Stadium. She was also the overall winner of this year's New Zealand Gold Guitar Awards.
TVNZ spokeswoman Meredith McGrath said last night the conditions were imposed by Imagination Television Ltd.
"I can confirm that Kylie has withdrawn from NZGT. Due to the contract she was required to sign at this stage of the competition, she no longer wished to continue on as a semifinalist," she said.
"The contract pertains to a Sony management deal and other recording agreements that are potentially part of the NZGT prize package. This contract is universal to the NZGT format here and internationally.
"NZGT contestants are not precluded from any public performances. The release form and agreement all contestants signed at the auditions does require the contestants to seek approval from the show's producers before participating in any media interviews, performances or programmes.
"Under the terms of that contract, they are not allowed to talk to the media until 30 days after the transmission of the final programme."
