No wonder she signed on for this!

Katy Perry will bank a whopping $25 million for her new gig on American Idol , TMZ reports. The singer allegedly rejected a $20 million offer and was playing hardball in negotiations, and the network had no choice but to give her what she wanted, as they needed a big name attached to the show before the Upfronts last week.

"Katy had all the leverage. If ABC ended up announcing the show without a judge, they'd be screwed," a source dished to the site.

"I am honored and thrilled to be the first judge bringing back the American Idol tradition of making dreams come true for incredible talents with authentic personalities and real stories. I’m always listening to new music, and love discovering diamonds in the rough — from mentoring young artists on my label, or highlighting new artists on my tours, I want to bring it back to the music," the "Chained to the Rhythm" songstress said in a statement announcing the news.

AI is also reportedly close to getting Ryan Seacrest to sign on. Just for perspective, the superstar host was only pulling in $15 million on his run, and J.Lo only made $15 million as well during her stint as a judge.

Sounds like they're going to have to show him the money! We doubt he'd take less dough than KP is getting!