Kerry Katona has apparently been filming taking cocaine, according to reports.

The former Atomic Kitten singer was pictured in a Sunday newspaper allegedly snorting the drug at her home in Cheshire last week.

According to the News of the World, Katona's eldest children, Molly and Lilly Sue, were also at home at the time of the incident and being looked after by a nanny.

The publication of the images could come as a blow to the 28-year-old, who has a big-money advertising deal with the supermarket chain Iceland.

Katona has refused to comment on the pictures, but a spokesman told the Daily Mirror she was “consulting her lawyers”.

A source added: "She is terrified of losing her Iceland deal which is her one remaining contract. This could be the final straw."

In an interview in 2007, Katona admitted to taking cocaine following her split with husband Brian McFadden in 2004.

Kerry Katona's worst moments