When the deal to sell Warner Music was announced in November, Bronfman's backers-which include prominent buyout firms Thomas H. Lee & Co., Bain Capital and Providence Equity Partners - said Ames would be the No. 2 executive, although they declined to assign him a formal title.

Ames himself has said publicly he plans to remain. But since the deal was announced, sources say relations between Bronfman and Ames have deteriorated. These people say Bronfman has failed to define a role for Ames, and now Ames is looking to exit the company unless Bronfman ensures that he would have a major role.

Through a spokesperson, Ames said, "I love the Warner Music Group, its artists and its employees and have every desire to continue to build a great music company with our new partners."

A spokesperson for Bronfman said word that Ames will depart "is not accurate, and we continue to look forward to working together as a team."

But sources close to Bronfman acknowledge that Ames' exit after the close of the deal is a possibility.

Ames, a highly successful music industry veteran, has been chairman and CEO of Warner since 1999.

Ames is worth well over $100 million, the bulk of which he earned when he sold his London Records to Warner in 1999, according to published reports. He's appeared on lists of the richest U.K. business executives.

Ames has four years left on his contract, but sources say it contains a buyout provision in the event of a transaction that results in Ames not being the most senior executive. One source familiar with the matter said Ames could walk away with a buyout package of $10 million to $15 million.

The Bronfman group agreed in November to purchase Warner Music for $2.6 billion.

The deal is expected to close in early February, about two weeks later than the group had originally targeted. Among other things, sources say, the buyers underestimated the amount of due diligence left to do, and the business was shut down for the holidays.

Bronfman, the Seagram scion who built Universal Music into the world's largest music company in the 1990s, will be the top executive at the company.

Ames had spent the summer spearheading merger talks with Bertelsmann's BMG, a deal that would have seen Ames as the top executive in the combined company. That deal ultimately collapsed after infighting between Time Warner and Bertelsmann executives.

Should Ames ultimately exit, the question then becomes who Bronfman brings in as his No. 2. Speculation within the music industry has centered on Lyor Cohen, the head of Universal Music's Island Def Jam label.

Cohen's contract is up for renewal, but sources close to Universal say Cohen is expected to re-up with his current employer.