Signed to N4 Records in Ireland, V2's UK operations snapped the Ballyfermot singer-songwriter in 2005 on the back of his successful 2004 debut Since Kyabram, which reached platinum status.
However the O'Rourke camp have confirmed that he won't be working with V2 on the follow-up.
"The contract came up for renewal in September last year, and an offer was on the table but he didn't want to take it," says his manager.
"It just didn't work. There was too long a gap before they released the album in the UK and there wasn't any action in the States, for example," he continues, making reference to the fact that tough times in the industry has caused V2 in America to stop releasing new records, instead concentrating solely on its back catalogue and digital music.
The move caused their US-signed acts such as The White Stripes, The Raconteurs and The Blood Brothers to be left labeless.
However the curly-haired Dubliner is continuing to work on his second album, whose tracks include 'Just To Be Friends', 'Save Your Soul', 'Whatever Else Happens' and 'Silly Days' as working titles.
A single will be released in July followed by the LP in September through N4 in Ireland, and there's interest from other labels in helping him release it in the UK, Australia and New Zealand.