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Source: Why Enrique Iglesias Pulled Out of Britney Spears Tour

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Tuesday was an eventful day for both Britney Spears and Enrique Iglesias. Spears, 29, debuted her album Femme Fatale — and announced plans for a massive tour with Iglesias, 35, opening.

By Tuesday night, however, Iglesias had already announced that he wouldn't be accompanying Spears on her concert trek after all, noting his "great respect for Britney. [He] is a longtime fan of her work."

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What really happened?

"Enrique didn't need to do a tour with Britney, as he's already on a sold out tour," a source close to the singer's camp tells "At the end of the day it was better for him to just continue his own tour."

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Despite a big-time announcement on Good Morning America Tuesday morning, "the deal was not done," the insider explains. "It was strictly a business matter."

Talk that Iglesias resented the idea of "opening" for Spears is also off-base, the source insists.

"It had nothing to do with Enrique's ego or having a problem with opening. It was always a co-headlining tour. . . in fact, Enrique prefers to perform first, as he doesn't like to perform late in the night."

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The multi-platinum, Grammy-winning "I Like It" singer remains "a fan of Britney's work," adds the insider.

Iglesias is currently wowing fans in Europe for his sold out Euphoria tour.

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