"I don't think Madonna has ever given a song to another artist," Kylie.
I don't think we can just blame the press as this is a direct Kylie quote. Sounds like Kylie's team started talking about this song, it didn't pan out in 2002 for whatever reason but it was used in 2007.
And the story was thus "it's a double A-side on the next single release". It was the press who said that, not Kylie, Madonna, or either of their teams. I'm not disputing that Madonna giving Kylie a song isn't newsworthy, I just have never been convinced that the reporting of it was not embellished.