Retail giant Target has said it was 'surprise and disappointed' that singer Lady Gaga walked away from an exclusive deal over gay rights issues.

Target announced last month that it would be selling a deluxe edition of Lady Gaga's second studio album Born This Way starting in May.

On Tuesday, gay glossy The Advocate reported that the deal was off.

In a interview with Billboard magazine, Lady Gaga, an avid supporter of gay rights, said that the decision “hinged” on Target making “amends for the mistakes they've made in the past.”

Our relationship is hinged upon their reform in the company to support the gay community and to redeem the mistakes they've made supporting those [anti-gay] groups,” she said.

We were very surprised and disappointed by the statements made by Lady Gaga's organization related to her partnership with Target,” the company said in a statement. “Target remains committed to the LGBT community as demonstrated by our contributions to various LGBT organizations, our recently established Policy Committee to review our political giving and our respectful, inclusive workplace environment.”

Target had become the target of a boycott last year after it was revealed that the Minnesota-based retail giant had given $150,000 to MN Forward, an independent political fund supporting Tom Emmer, the anti-gay Republican nominee who lost his bid to become Minnesota's next governor.

Recently, the company announced it had created a committee to oversee political donations and would report on its website corporate contributions of more than $5,000. Some companies post contributions as low as $100.