"We were unable to come to terms in a recent contract negotiation, and decided that it was best to move on," a rep for the singer told the mag.
The former "American Idol" runner-up released four albums on the label, most recently 2008's "On My Way Here."
His RCA discography also includes his debut, 2003's "Measure Of A Man," as well as the 2004 holiday album, "Merry Christmas With Love," and 2006's "A Thousand Different Ways."
Though Claymates may be clamoring for new music from the star, he's stayed in the spotlight with two stints on Broadway's "Spamalot" and will be a guest judge on the April 8 episode of "America's Next Top Model."
And the busy singer has his hands full at home with his son, Parker, born August 8 last year.
"I may never have any free time once Parker starts walking and talking," Clay told People in December. "He's still uber-dependent. I'm ready for him to start talking. I'm ready for a little action!"