"They need mentors that are currently selling music in today’s climate ... and know about creating artists in the world of TikTok, YouTube and digital sales," the insider added.
"It’s a massive blow to the fans of the original series who were expecting to see that nostalgia factor.”
It’s believed Mark, Marcia and Dicko, in particular, are bitterly disappointed by the decision to overhaul the judges panel.
Ian has recently made a return to our TV screens however, by joining the cast of Holey Moley as a golf-playing pirate.
Speaking to New Idea at the time, the 57-year-old opened up about being part of the ratings hit, where he said he isn't "desperate to do TV shows".
"If I’m going to work, it needs to be fun or pay lots of money! They wanted me to be a grumpy C-grade celebrity down on his luck, and I thought: 'I could play that.' It’s not too far from the truth!" he said.
Channel Seven announced in October last year that it is bringing back the reality show in 2022.
Australian Idol launched the careers of many Aussie artists including Guy Sebastian, Jessica Mauboy, Ricki-Lee, Shannon Noll, and Casey Donovan.
No details have been revealed yet as to who will host or judge the revamped series or when in 2022 it will air.