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KELLY OSBOURNE is out of rehab and working on her second album, her mother SHARON has said.

The singer entered a clinic after Sharon and Ozzy were contacted by a British newspaper wanting a comment on a photo which they said appeared to show Kelly buying drugs.

Speaking in the US, Sharon said that Kelly’s now concentrating on working on her new record with collaborator Linda Perry.

She told MTV: "She's doing great. She's finishing up her album with Linda Perry. They're still in the studio, she finishes in about a week. And she's in a new show on ABC, so she's very busy right now."

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