The court trial of former X Factor judge Tulisa Contostavlos took a sensational turn yesterday when a recording was played for jurors that featured footage of her former manager claiming that Simon Cowell is gay.

Manager Gareth Varey made the admission in a phone call with undercover Sun on Sunday reporter Mazher Mahmood that SYCO boss Cowell was gay and that he knew men who had slept with the former boss of Contostavlos.

The allegations were aired during yesterday’s proceedings at Southwark Crowd Court, where the former talent judge and member of pop group N-Dubz denied being involved in the supply of Class A drugs.

A spokesman for Cowell said, “We are bound by contempt of court rules so cannot respond to these claims in the manner we wish to. We are speaking to the Attorney General’s office – and we intend to make a statement in court as soon as possible”.

Mahmood was disguising himself as a fictional Hollywood big shot and had offered Varey’s client a role in a film alongside Leonardo Di Caprio, also mentioning the names of actresses Lindsay Lohan and Cameron Diaz in an attempt to convince of the film’s authenticity, claiming that it would be Tulisa’s “big break in Hollywood”.

Michael Coombs, a friend of Mike GLC, pleaded guilty to supplying cocaine last Monday and will be sentenced at the conclusion of proceedings. The trial continues on Monday.