How to permanently delete a contact from my iPhone 4s?

Its more than just selecting the contact and hitting delete. When I do that, if I create a new text msg the contact is still there.
For example… Contact "Laura" is deleted, I create a new msg and type "L" in the To: field and Laura is still there. (the number, and not the name shows up after selected)
I have even went into my iCloud but that made no difference either

Added (1). It didn't occur until I updated to ios 6

The number is probably stuck into your SIM card rather your phone. Not much you can do about it except get a new sim card.

Well that's silly why have a delete button then?

When you delete Laura she is gone from your contacts ya. And the when you type in L 'Laura' still comes up right. And explainion mark '!' Should come up beside Laura ok hit that and it should say remove from recents and than it should be gone. Hope this helps.

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