The troubled singer - who has had a well-documented battle with drug addiction - was given the ultimatum by bosses at Universal who are dismayed by her recent behaviour.
A source close to Amy - who was ordered into rehab earlier this year by the label's European chief Lucian Grainge after he saw footage of her smoking what appeared to be crack cocaine - said: "Amy has been reminded of her responsibilities. Unless she is clean she will not be allowed to release another album.
"She took notice when Lucian talked to her earlier this year and agreed to go to rehab. But she didn't take it seriously enough.
"They would never release her from her deal, they would just not put an album out."
Amy - whose Grammy Award-winning second album Back to Black catapulted her to worldwide fame - recently scrapped plans to record her third LP in the Bahamas.
Universal bosses now accept it is unlikely her album will be released until 2009 and are urging her to get help.
The source added to Britain's The Sun newspaper: "The label were not impressed. She has been warned about her behaviour and needs to keep the standards up."
Music News http://www.nzherald.co.nz
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