BRITNEY SPEARS is heading for a head to head album battle with pop’s ultimate fallen diva – WHITNEY HOUSTON.

The clash was set up because Brit has impressed label chiefs so much with her new material.

Brit has spent the past two years shaving her bonce, flashing her undercarriage, divorcing her husband and crashing cars — but finally seems to have got her act together.

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 reignited their faith and they are confident she can crush aging Whitney in a titanic Christmas LP scrap.

A label source said: “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.

“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 Brit will come out on top.”

At least Brit is listening to decent music. She looked her best for months when snapped leaving an LA gym clutching a copy of RADIOHEAD’s In Rainbows this week.

Houston appears to have finally conquered her drugs problems and has roped in some of the urban scene’s heaviest hitters for her return.

WILL.I.AM, R. KELLY and JOHN LEGEND have penned tracks and her next single will be a collaboration with AKON.

She received a cool £1million for playing charity event the Cauldwell Children Legends Ball in London’s Battersea last night.

But her last album of original material, in 2002, sank without trace and pop has moved on since her Eighties heyday with LEONA LEWIS now wearing her crown.

Christmas 2008 could be all about Brit though and I’m lumping on a full-scale Britney comeback…