Price had split from the cage fighter just weeks before their first wedding anniversary and believes that USD 1 million is a more adequate alimony for their short time together, reported a website.
"Alex's demand for her to pay him USD 9.7 million as part of a divorce settlement have left her staggered. She can't help but think Alex is a very deluded man indeed," said a source close to the model and actress.
Last week, Reid finally moved the rest of his belongings out of Price's USD 4 million Surrey home after she offered to buy him a home in London.
"As far as Katie was concerned it was a fair and decent offer. Alex gave every sign that he was also thinking along the same lines too," added the source.
The cage-fighter laughed off reports he has been sleeping in a budget hotel since moving out of Price's mansion.
Reid's alleged demand comes a week after he met up with his ex-wife at a luxury spa for the Valentines Day weekend.
Price announced the couple had split on January 18 in a lengthy statement, accusing Reid of being "fascinated" by his new celebrity status.
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