The Latin heartthrob and 'Into The Blue' singer have collaborated on the track 'Beautiful' but their labels Universal Republic and Parlophone are at war over when it will be released.
Enrique told the Daily Star Sunday newspaper: ''I'm hoping the duet will be released as the next single but I know there's been a few problems between the record companies because she is on a different label.
''It's all politics. There was a moment when the record companies were fighting back and forth, but in the end Kylie and I spoke and we will make it happen.''
The pair, who are both set to release new music this year, will shoot a video for the song in March.
Enrique, 38, said: ''I'm a huge fan of Kylie. She's so sweet and she's been going for a long time but is as sexy as ever''
The star's new single 'I'm A Freak', featuring Pitbull, is out on March 16, while Kylie, 45, releases her single 'Into The Bull' on March 9.
Enrique also rubbished reports he got a car drive 20 metres after throwing a strip and insists he's not a diva.
He added: ''That was such bull****. My manager told me to get a car because it was cold and there were photographers outside.''
Take a look back at October's inaugural event.
The film is expected to continue without Mendes' involvement.