The 52-year-old singer, real name George O'Dowd, met up with guitarist Roy Hay earlier this month to discuss plans to begin working on new material, reported Contactmusic.
"There are some interesting ideas about who we want to work with. It's got to be really good... It will be a new record, completely new. There's no point just doing it for nostalgia... We're certainly going to do it," he said.
The 'Karma Chameleon' hitmakers had hoped to reform in 2011 to mark their 30th anniversary with a tour, but it didn't materialise.