Hudson, 31, came to prominence in 2004 as a finalist on the third season of 'American Idol', reported Ace showbiz.
Another 'Idol' alumni Kelly Clarkson is also rumoured to be returning on the singing competition series as a judge.
"It's Idol alumnus bringing in the next generation," a source said.
"Harry Connick Jr, Kelly Clarkson and Bruno Mars is their so-called 'dream team'. The producers would really like to add a former Idol to the panel," the source added.
Randy Jackson himself has confirmed his departure from the reality series after 12 seasons.
Fox's alternative programming chief Mike Darnell, who helped launch "Idol", has just announced his decision to depart from the network as well.