Viewers decided to vote the 27-year-old off the show, leaving Olly Muirs, Stacey Solomon and Joe McElderry to go head to head for the grand prize.
Upon hearing the result of the viewers' votes, Danyl's shocked mentor Simon Cowell had nothing but praise for his act saying: "There was nothing more he could have done. He's gone out on a high. He's a graceful loser."
"I have met some best friends for life," added the teacher from Reading, who was complimented by the judges for his performances of Whitney Houston's I Have Nothing, and Michael Jackson's Man in the Mirror.
Olly, 25, burst into tears when he was told he had a place in the final three, facing 18-year-old Joe and mum Stacey, 20, who looked shocked to have made it through.
They earned their places after each singing a Michael Jackson number and a song of their choice they felt would get them through to the next round.
While Joe is the favourite to win, Simon admitted its one of the closest semi-finals he's ever seen, saying: "I can't call it this time."
Cheryl Cole, sporting a new shorter 'do, added she was "sick with nerves", while Stacey's mentor Dannii Minogue agreed: "Everyone's nervous. We just can't hide it."
The weekend's entertainment also came courtesy of the music scene's hottest star Lady Gaga who sang her new single Bad Romance.
Notorious for her quirky attitude, the 23-year-old requested a giant bathroom, including a four-metre-long bath, to be built on stage for her appearance.
Michael's sister Janet Jackson also sang on the show – only her second performance since the passing of the 50-year-old.