London, May 9 : Now that Britney Spears seems to have got her act together, the singer is heading for a head to head album battle with pop's ultimate fallen diva - Whitney Houston.

After the poor reception for her most recent album Blackout, label bosses thought their wayward artist had blown it.

But impressive demos from recent studio work re-ignited their faith and they are confident she can crush ageing Whitney in a titanic Christmas LP scrap.

"Britney has been on fire in the studio of late. During recording sessions for the last album she was consumed by her chaotic private life," The Sun quoted a label source, as saying.

"But she is determined to make a triumphant comeback. Top brass have been amazed by the quality of tracks they've heard.

"Whitney is set for another relaunch at the same time later in the year. They're determined Britney will come out on top," the source added.