The 67-year-old has been signed up to take part in the television music competition while creator Simon Cowell finds a replacement for Kelly Rowland, reported Contactmusic.
"Rod is a genuine living legend and exactly what the show needs. The details are still to be ironed out but it looks like he will be at the auditions next month in London and possibly Glasgow because of his Scottish heritage.
"He is sold more than 100 million records worldwide so he knows exactly what it takes to succeed in the tough world of showbusiness, and hopefully he will also be a big draw for viewers who might not have been fans of 'The X Factor' before," a source said.