Stormy Daniels tells friends she's 'free to talk' after Michael Cohen breached their contract
President Donald Trump and adult actress Stormy Daniels, in a 2006 Myspace photo.

A Hollywood tabloid is reporting that Stormy Daniels thinks that she is free to speak since Michael Cohen acknowledged that she was paid by him to keep her mouth shut about an alleged affair with President Donald Trump.

The Blast reported Wednesday that Daniels told friends she fully intends to speak out in wake of Cohen's public statement.

Gina Rodriguez, a manager for Daniels, confirmed to The Associated Press that she believes Trump's lawyer invalidated the non-disclosure agreement.

Sources told The Blast that Daniels' legal team notified Trump's legal team, including Cohen, that they are in violation of the 2016 agreement. Presumably their agreement was to not discuss if there was an agreement. While speaking to Jimmy Kimmel, Daniels wouldn't confirm or deny anything. Instead, she stayed silent. If Cohen acknowledged that there was a deal when Daniels did not, it's possible that violated the agreement.

Cohen announced late Tuesday that he paid Daniels, whose real name is Stephanie Clifford, the $130,000 independently of the Trump campaign and the Trump organization. The payout occurred just weeks prior to the 2016 election and Cohen indicated it was to keep her mouth shut.

“Neither the Trump Organization nor the Trump campaign was a party to the transaction with Ms. Clifford, and neither reimbursed me for the payment, either directly or indirectly,” he said in a statement.

The source revealed to The Blast that Daniels now believes she is excused from “further performance of the non-disclosure agreement” between herself and Cohen.

Cohen called the payment "lawful" in his statement, though he didn't disclose whether Trump knew about the money. Nor did he indicate any specifics about the deal other than the sum of money. He maintained that the allegations Daniels made were false.

"Just because something isn’t true doesn’t mean that it can’t cause you harm or damage. I will always protect Mr. Trump," Cohen said.

(Note: Updated with confirmation from the Associated Press)