Blunt and songwriter Amanda Ghost were once good friends and penned number one hit 'You're Beautiful' together.

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But in his new song 'Annie' - taken from Blunt's latest LP 'All Lost Souls' - the former army officer sings "Annie, you had your dream on the bright lights/ You're just not going very far. Your dreams are crumbling".

A music industry insider insists the lyrics are about Ghost. He said "Amanda did once see herself as a pop star, but that was years ago and this seems like a mean-spirited attack on a woman to whom he owes a great deal, if not his whole career."

Ghost hit back, saying "I'd hardly have said my dreams were 'crumbling'. James has had one number one hit, but I've since gone on to have two more." when confronted with the possibility the song was aimed at her.

Ghost co-wrote Beyoncé Knowles and Shakira's worldwide smash 'Beautiful Liar'.