The 63-year-old is said to feel “fired up about the challenge”, while sources close to Cowell have claimed the new project is “very different to what has been done before”.
An insider told MailOnline: “Something has been in the works that’s imminent and is very different to what has been seen before.
“Yes, it will probably involve putting together a new group.”
The outlet also reported that the music mogul, who stepped away from his Syco music label in 2020, “clearly remains fiercely committed to his music career”.
The Standard has contacted Cowell’s rep for comment.
Speculation surrounding his return to finding the next big thing comes after his new venture, Syco Publishing, with Universal Music Publishing Group was announced.
The collaboration aims to sign and develop songwriters, with Cowell already working with artists such as Lucy Spraggan, James Arthur and Camila Cabello.
Speaking of his music venture, Cowell said: “There is nothing more important than a great song.”
At the time, the TV star appeared on the sofa alongside singer-songwriter Spraggan to help promote her new single.
Asked if there would be “a new vehicle to refeed the pop engine”, the pair shared a knowing look and a smile.
— BBC The One Show (@BBCTheOneShow) December 8, 2022
“When we started the show in the first place, it was honestly with the feeling that people need a platform,” Cowell said.
“It’s very difficult to get a record deal. It still is today. It’s really, really hard. I would argue it’s harder today to get your music noticed than it was 10 or 15 years ago.
“So, the show did what it intended to do, which was to help people who couldn’t get a record deal for whatever reason … and in a lot of cases, thank God, it did launch careers.”
Spraggan added that such competition shows provided platforms to those who may not “get the same opportunities”.
Reflecting on her comments, Cowell added: “There might be a plan here… there might have been a conversation.”
In July 2021, ITV said there were “no plans” for another series of The X Factor.
The last full series of the pop music TV talent show aired in 2018, although a celebrity edition was broadcast the following year in 2019.