The agency said in a statement: "We believe Britney is enormously talented, and has made a terrific record. But current circumstances have prevented us from properly doing our job."
The blow comes amid the ongoing battle between Spears and former husband Kevin Federline for custody of their two children.
A former bodyguard for the pop star has reportedly filed comments to the court about alleged nudity and drugs and the safety of her their young sons.
Tony Barretto, 28, worked for Spears from the time she left a rehabilitation clinic in March until May 17.
Mr Barretto arrived in court yesterday with a lawyer but was not called to testify. Instead his comments were filed with the court as evidence.
Outside the court, Mr Barretto's attorney Gloria Allred said she was shocked her client was not questioned and issued a statement calling him a "key and secret witness."
Federline's lawyer, Mark V. Kaplan, said it was not unusual for lawyers to decline questioning a surprise witness.
"Sometimes lawyers don't like cross-examining when they don't know what the extent of the answers will be," he said.
The singer married Federline in October 2004. She filed for divorce last November and the divorce became official July 30. The two have joint custody of sons Sean Preston, 2, and Jayden James, 1.
Spears went through episodes of bizarre behaviour early this year - including shaving her own head - and finally spent time in rehab.
Her attempts at a professional comeback took a hit last week with a sloppy performance at MTV's Video Music Awards.
In a further developement, Spears also parted ways with her attorney.
Her divorce lawyer, Laura Wasser, was replaced by Mel Goldman of Los Angeles law firm Freid and Goldman. Neither Goldman or Wasser discussed the change.
Source: www.telegraph.co.uk
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