According to The Sun, Mutya Buena, Keisha Buchanan and Siobhan Donaghy met last week and have decided to move ahead with a planned reunion.
A record label source said: "The comeback is gathering momentum.
"Mutya had a lot of convincing to do to get the girls around the table to sort things out. That happened last week and they are all game to give it a go."
They added: "Mutya's manager knows he needs some muscle to make it a commercial success and he's called in his old pal Claire.
"The other girls are delighted to be back in touch. They are bang up for it with the new management team. They are now looking for a record deal and have started planning for a big launch next year."
Earlier this month, Buchanan's manger said that the singer is concentrating on her solo career and "is definitely, 100% not going to be involved in any kind of Sugababes reformation".
The current Sugababes lineup of Heidi Range, Amelle Berrabah and Jade Ewen are recording brand new material for inclusion on their upcoming Sweet 7 album.