Hatton and comedian Joey Blower want to release a cover of the Jeff Beck hit with altered lyrics that refer to the boxer's fluctuating weight.
According to The Sun, the new chorus will include the lines: "And it's hi ho Ricky Hatton, he ate all the pies. He's never seen a salad, he ate all the pies."
The sports star wants Manchester City footballers and Oasis guitarist Noel Gallagher to guest on the track.
"It will be a great laugh," said a source. "A bit like the Tony Christie 'Amarillo' thing. It should do really well, especially in Manchester."