Sources told Billboard.com that Islam has recorded his first pop album since "Back to Earth" in 1978. Several record labels are reportedly bidding for the set, which is due out next fall.
Dido and Rod Stewart's producer, Rick Nowels, worked with Islam on the album that reportedly harkens back to 1971's "Teaser & the Firecat," which made Stevens a household name with a string of hit singles.
It's unclear what name the artist born Steven Georgiou will release the album under, Billboard.com said.
Islam changed his name and swore off pop music after the release of "Back to Earth." He currently lives in London.