Talking to Teen Vogue the US X Factor judge denied claims that she and Niall are an item.
She told the magazine: "He's a really awesome, sweet guy but he's not my boyfriend...I'm in a place right now where I really need to focus on myself."
Niall Horan fans, you can all let out a collective sigh of relief.
Despite focusing on herself for the time being, Demi admits that this hasn't stopped her from having feelings for members of the opposite sex.
She explained:"Obviously, I'm still going to like people—or love them—but I need to not be in a relationship for a while because I need to be OK with being alone, first."
So for the time being at least, Niall and Demi are just friends.
But we're not entirely convinced.
The singer, who is currently a judge on the X Factor USA, also opened up about her long term battle with depression explaining how she never thought she would be where she is today.
She said: "I'm really happy right now. I never thought it was possible to be happy because of how depressed I was my entire life. But I feel so incredible. It's like living in a dream."
[Related article: Niall Horan 'doesn't care' about death threats]
[Related article: Demi Lovato and Niall Horan 'loosely dating']
Demi Lovato also admitted that after her recent stint in rehab she decided to let go of the people in her life who were pulling her down and focus on the ones who genuinely cared about her.
She admitted: "I did kind of a friend cleanse right after rehab, where I weeded out people who didn't have my best interests at heart."
"Now I have friends who love me for who I am and don't care about what I'm doing. Most of them aren't in the industry. Some of them don't even know my songs!"