Simon Cowell invited the singer down to the show on Sunday
Simon Cowell proved he doesn't hold grudges, by burying the hatchet with James Arthur.
The music mogul and the 2012 'X Factor' winner are said to have made up after James approached Simon to ask for tickets to attend Sunday night's live show.
According to the Mirror newspaper, Simon offered the 26-year-old singer and his sister VIP tickets to sit in the audience and even invited him to his dressing room so the pair could talk over their differences and bury the hatchet.
Following their chat, James also enjoyed dinner with this year's remaining contestants.
A source said: "Even though Simon dropped James after just one record, and didn't condone the way he conducted himself on Twitter, he still thinks that James is incredibly talented and wanted to put water under the bridge.
"James seems to be in a really good place now - he genuinely seems happier than ever. This is something he needed to do to be able to move on."
The pair became embroiled in a very public spat earlier this year which ended in the 'Impossible' singer being dropped from his SyCo record label.
James is believed to have upset company bosses on several occasions with his behaviour, online rants and use of controversial lyrics.
He was reprimanded in April after unveiling the rap track 'Follow the Leader' in which he sang: "Look at what you do to me, I'm crying over stupid s**t, you're such a f**king homophobe, wish I'd never let you in, to think that I was thinking maybe I should let you live, I'm gonna blow up your family like I'm a terrorist."
He was also heavily criticised for using the word "q***r" in a rap battle and became involved in a text and Twitter argument with his fellow 'X Factor' contestant Lucy Spraggan.
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