The former Pussycat Dolls singer was romantically linked to the flame-haired crooner amid claims he wooed her with orange squash and trips to Pizza Express.
But the gorgeous star has firmly denied the pair were ever an item.
Nicole – who split from Formula One driver Lewis Hamilton in January – said: “It had been going on for so long and Ed and I are good mates, so we decided to just have fun and take the mic.”
The 37-year-old beauty first sparked rumours of a romance when she shared a photo with Ed backstage at his North London concert.
She then hinted they had broken up – sharing a video of herself pretending to sing one of his songs.
She added the hilarious caption: “nicolescherzy#TotesEmosh (Totally Emotional) that @teddysphotos and I broke up today #OrangeIsntTheNewBlackAnymore #ScherzyLosesItAfterSheeranBreakUp #NoMoreSheerzinger”
Speaking to The Huffington Post, she explained: “We thought it was quite clever of us. I thought of it all on my own.”
Meanwhile, Nicole has signed with a new record label and hopes to have a new record out next year.
She said: “I’ve got a new deal coming out. It was reported all this year that I was dropped and I actually wasn’t dropped.
“I was signing a new deal with another label. We’re still working on the contract, which I am unable to speak too much about.
“I’m really excited about this project and new music that I’m putting together, and which will be released next year.”