The 19-year-old 'Party in the USA' hitmaker has been approached by Cowell's team and is in negotiations to take a place on the judging panel after the departure of Nicole Scherzinger and Paula Abdul, reported Femalefirst.
"There have been talks with Miley," a source said.
If Cyrus takes up the role she will join judges Cowell, LA Reid and Britney Spears, on the show.
Cowell, 52, previously commenting about Spears, said, "I would love to have her on the show ... I think she would be a fascinating person to sit next to."
The delay in the contract between Cowell and Spears has been cited as the number of series she would have to commit to.
"Money is not an issue for the show. As of now, they are looking to pay her USD 12-15 million for the first season, with a drastic price hike for a second year based on ratings performance.
Cowell wants at least a two-year commitment and Spears wants an out clause if she doesn't want to continue after one year of service," a source said. PTI CORR BB