The group, who split ten years ago, are also said to be in talks for a three-part series to air on Sky Living in the build up to the reunion.
A source told The Sun: "Faye, Lisa and Lee all previously said they were up for a reunion while Claire and H took a bit more persuasion."
Steps, who were made up Claire Richards, H, Lisa Scott-Lee, Faye Tozer and Lee Latchford-Evans, sold over 15 million records and scored 14 top ten hits, and parted ways on Boxing Day in 2001.
H and Claire formed a duo shortly after, but were dropped after their album Another You Another Me peaked at number 58, while Scott-Lee released four solo singles and appeared on ITV's Dancing On Ice.
Latchford-Evans went on to appear on MTV's Totally Boyband, and Tozer scored a top ten hit with Russell Watson on 'Someone Like You'.
Last year Tozer claimed she and her bandmates were closer than ever.