The celebrity news outlet quoted sources as saying the 30-year-old catwalker's contract was not renewed because she "has a difficult reputation" and is "not a big seller for VS."
However, Ed Razek, the lingerie company's chief marketing officer, told UsMagazine Kerr already has been invited to appear in the 2013 Victoria's Secret Angels fashion show.
"We have no plans to stop working with her," Razek said.
Kerr is married to actor Orlando Bloom. They have a 2-year-old son.