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Camille Grammer is out, and model Yolanda Hadid is in on Real Housewives of Beverly Hills.

Amid reports that Camille’s contract wasn’t renewed because of a breakdown in contract negotiations, Bravo is replacing her with Yolanda for the third season of the popular reality show.

“Adding a model to the mix is sure to make for new and interesting drama!” a source tells Life & Style.

Camille announced on Saturday that she would not be returning to the show, stating that she and the producers couldn’t come to an agreement.

According to an insider, Bravo executives didn’t want Camille to be a part of the main cast anymore, and only wanted her to make guest appearances.

“Camille feels like producers are retaliating against her because in season one she was portrayed as the villain, but during season two, as her life calmed down because most of her divorce drama was finished, she was in a much better place, and very happy. Camille doesn’t need to be on the show and she turned down the offer. She thanked the producers for putting her on the show and she is moving on with her life,” says the insider.

Yolanda is married to Grammy-winning songwriter David Foster. The couple were married in a star-studded ceremony on 11/11/11.

photo: Adriana M. Barraza/WENN