Iggy Azalea
Singer and model Iggy Azalea arrives for the BRIT Awards, celebrating British pop music, at the O2 Arena in London February 19, 2014.Reuters

After initially denying that she was ever involved in the making of a sex tape, rapper Iggy Azalea's lawyers have reportedly conceded that it could be her in the footage with former boyfriend Hefe Wine.

The 24-year-old rapper's lawyer told TMZ that she was underage when the footage was shot, and that she wasn't aware that the act was being filmed at the time. However, her partner in the sex video has disputed these claims stating that she was above 18, and consented to being filmed.

The tape is currently being shopped by adult entertainment giant Vivid Entertainment, and its founder Steve Hirsch is believed to have offered Azalea a seven figure amount for permission to release the raunchy footage.

Hirsch reportedly feels that Azalea's video could surpass the popularity of the sex tapes featuring Kim Kardashian and even that of Paris Hilton's. "I believe there would be a huge demand for her sex tape," Hirsch told HollywoodLife. "Iggy has proved that she's an amazing talent. If there is any tape out there that can rival that of Kim Kardashian, this one is it!" he said. "We are conducting our due diligence and if we are satisfied with our review, we will definitely try to make a deal to distribute the tape."

However, Azalea is having none of it. She recently protested the release of the video tweeting: "Anyone who releases or attempts to make profit off someone else's intimate moments against their will is a sex offender."

While Azalea is currently against releasing the sex tape, a source told HollywoodLife that the rapper herself might release the footage once her popularity subsides.

"The tape is real, but Iggy is currently experiencing a career high, so she's definitely not going to sign a sex tape release form. Therefore, it will not be released any time soon. But in a few years, if her career takes a dip in any way, and she starts to be forgotten, then Iggy will likely sign on the dotted line and release the tape," the source said.

It remains to be seen what her current boyfriend LA Lakers player Nick Young will react to her sex tape being released. But a source told HollywoodLife that Young feels bad about how it would hurt her career.