Cowell, 54, sees the model as a potentially huge star and while a contract hasn't been offered, the two parties have been having private meetings, reported Daily Mirror.
"Simon reckons Cara has the chance to make them both money. His people haven't offered her a record deal but have been interested in talking to her," a source said.
It was recently claimed the Burberry model launched her music career in a 'dive pub' in New York.
During the solo gig, Cara reportedly sang several original tracks along with a set of covers, which she performed acoustically at the small venue.