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Talib Kweli’s Blacksmith Music imprint has dissolved its distribution arrangement with Warner Brothers Records.

The Brooklyn MC confirmed the split to AllHipHop.com today after rumors surfaced online that he had been released from his contract with the label.

“My label Blacksmith is no longer distributed by Warner Brothers, which means they will not put out Blacksmith future projects,” Kweli told AllHipHop.com. “I still have a deal to put out Talib Kweli and Reflection Eternal thru Blacksmith/WBR.”

Blacksmith Music was born out of a partnership between Blacksmith Management, originally established by Kweli’s partner Corey Smith, and Warner Brothers in 2006.

The roster includes Jean Grae, Strong Arm Steady and Guyanese/Canadian import Anjulie, the label’s sole non-Hip Hop act.

Since its launch, the label has released a compilation album entitled Blacksmith: The Movement, collaborative projects between Kweli and Madlib, and Jean Grae’s critically acclaimed, 9th Wonder-assisted Jeanius.

The label is also planning a new album by Strong Arm Steady, entitled Arms & Hammers and Party Robot, the debut album by Idle Warship, Kweli’s new group with singer Res and Canadian singer/rapper Graph Nobel.

While release dates have yet to be announced, all three projects were originally slated for 2008 releases, which would lend some truth to rumors that the split was related to the current economic situation.

Kweli’s fourth solo album, Prisoner of Consciousness and Reflection Eternal’s Train of Thought II were also scheduled for 2008 releases.

At press time, comment from Warner Brothers Records was not available.