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The 61-year-old Oscar winner is currently working on his album and is keen to collaborate with the music legend.
He told Shortlist magazine: "Winning the Oscar has helped me. I'm currently making an album with producer and songwriter T-Bone Burnett. That comes directly from the success of Crazy Heart.
"I was recently on the 'Speaking Clock' tour, headlined by Leon Russell and Elton John. Elvis Costello was there and I got to sing with him, which was cool, I really enjoyed it.
"Elton is a great person. We talked about doing a duet. I'd certainly like to."
Bridges also discussed his Oscar nomination for True Grit, saying that his favourite thing about awards recognition is the "acknowledgement" of a good movie from his peers.
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