Katie Price has denied Alex Reid a £1million house and £500,000 cash to walk away from their marriage.

It left the pair in a bitter deadlock last night over how to end their failed relationship.

Katie Price and Alex Reid divorce

Price, who works as a glamour model under the name of Jordan, believes cage fighter Reid, 35, should walk away from the divorce with his head held high and with his dignity still intact, a source told People newspaper.

Price, 32, claims Reid has earned enough money out of their relationship with his TV and magazine deals over the past year. But he seems to have been advised to go for more.

Contrary to popular belief, sources close to Price say she did not make Reid sign a prenuptial agreement before they got married last February.

The mum of three, whose first husband was Australian-born singer, Peter Andre, is said to be devastated over the marriage break down.

The newspaper reported her telling a friend: “When I married Alex I thought he was the one, I really did. I’m embarrassed and I’m shattered by the way it’s all turned out in the end.”

Apparently shocked by Reid’s demands, she is said to have told a friend: “This is not the Alex Reid I knew when we first got together. This is not the man I married.

“I thought we’d be together for life. I would not have married a man I thought would make demands of me if it all ended.”

Reid is said to have earned about £250,000 over the past year from his TV deal with the Bravo channel, a magazine deal and several other smaller promotional contracts.

Jordan is one of Britain’s most successful businesswomen, with a £40million fortune from modelling and TV appearances, including I’m a Celeb and fly-on-the-wall documentaries. She also has four autobiographies and a series of novels to her name and a range of horse riding merchandise.

She has three children, Harvey, eight, Junior, five and Princess, three.
A source told the newspaper: “This is not how Katie wanted it to end, she wanted to end the relationship with dignity. She wishes they could just quietly move on with their lives.”

Reid, however, is being encouraged by his circle of friends and management not to walk away empty-handed.

A friend of Reid  told People, “It is her decision to end the relationship. The least she can do is buy Alex a decent home to carry on his life with. And the £500,000 payment is more than fair, considering she has chosen to end it so quickly.”

Rejecting pressure from her friends to change the locks on her £3 mansion in Woldingham, Surrey to keep Reid out, Price apparently wants him to leave of his own accord to save him the humiliation of going back to his parents house in Aldershot, Hants.

Price is said to have made her final decision to end the relationship while holidaying in the U.S last month, where she visited her boxer friend Amir Khan.

Katie Price and Alex Reid to announce split

Reid and Price had been together just six months before their quickie ceremony in Las Vegas in February 2010.