The insider added: "He told her they can still hook up, but anything serious is off the table."
Khloe has reportedly been hit hard by James' decision to end their relationship, especially in light of the health concerns surrounding her estranged husband Lamar Odom, who was discovered unconscious in a brothel in Nevada earlier this year.
Since then, Khloe has made regular visits to see Lamar and was spotted at the Cedar-Sinai hospital in Los Angeles after Christmas.
Khloe - who married the retired basketball star in 2009 - previously revealed Lamar is making a good recovery.
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She said: "His kidneys are recovered and all of his organs are pretty much recovered. It's more his brain is still affected and physically he has to learn how to walk again and he is learning how to feed himself again.
"All those normal things we take for granted every day and it's a really long road and it's going to take a long time."
-Bang! Showbiz