The celebrity news website cited sources close to the band as saying Sambora wanted more money and front man Jon Bon Jovi declined.
Sambora, a Bon Jovi musician for 30 years, was making $2 million a month and 20 percent of the profits of each concert. In a massive drop in payments, his replacement, Philip "Phil X" Xenidis, is making $10,000 a month.
Sambora is expected to continue getting royalty checks since he co-wrote many of the band's biggest hits and his image appears on merchandise, the report said.
"Richie wants to go back on stage -- that's his first love. He's really upset over the news," an insider told RumorFix.com.