The former Oasis guitarist, 45, has been on Simon Cowell's wish list for the hit TV talent show for years, reported Sun online.
"Simon is determined to get Noel on board. He sees him as his natural replacement as the real alpha male on the panel. He thinks Noel would be ideal, with his music knowledge, straight-talking and rapier wit," a source said.
Gallagher was first approached by Cowell in 2011.
"Noel's daughter Anais is a huge fan of One Direction and 'X Factor', so she'll be nagging him to say yes," the source added.