Jessica Garlick mantains she will be "a big thing in pop"
Garlick's performance of the Shakin' Stevens number Merry Christmas Everyone was praised by judges - but received the fewest votes from the show's viewers.
Apparently fighting back tears, she hugged the other eight contestants and said: "I've had the most fantastic experience of my life."
All of the would-be stars had been given Christmas songs to sing.
'Entertainer'
Pete Waterman said Ms Garlick had "a very professional voice" but cast doubt on her ability to make it as a pop star.
Fellow judge Nikki Chapman also doubted the singers' likelihood of making it through the competition but said she was "an entertainer who has been
consistent in this competition".
Garlick disagreed with the judgements - and maintained she could be "a big thing in pop".
Rik Waller's withdrawal from the competition due to illness gave a second chance to Darius Danesh, who was rejected in a previous heat.
'My life'
Waller, 20, was said to be unhappy the programme had gone ahead without him and wanted ITV bosses to postpone Saturday night's show until he had fully recovered.
"To ITV it's just a business, but it's my life," he told the News of the World.
The eight contestants remaining will compete by singing Burt Bacharach songs in next week's show.
They are:
Darius Danesh, 21, who is studying at Edinburgh University,
Hayley Evetts, 25, from Birmingham,
Gareth Gates, 17, from Bradford,
Aaron Bayley, 26, from Newcastle,
Rosie Ribbons, 18, from Swansea,
Laura Doherty, 19, from Londonderry,
William Young, 22, from London, and
Zoe Birkett, 16, from Darlington.
Bookmakers William Hill have put Gareth Gates favourite to win the contest at 6/4. according to bookmakers William Hill.
The winner will receive a management deal with 19 Management, the team behind the Spice Girls and S Club 7, and a recording contract with RCA Records.