The former X Factor champion closed the deal following his victory on Sunday night's Popstar to Operastar final.
McElderry will release an album of 'classic songs' on August 22, which will include covers of 'Somewhere Over The Rainbow', 'Nessun Dorma' and 'I Dreamed A Dream', say reports.
"My new album is a snapshot of where I am today and I am excited about the opportunity to record and perform some of this amazing repertoire," McElderry explained.
The 20-year-old singer was dropped from Simon Cowell's Syco record label earlier this year following disappointing sales of his debut album Wide Awake, which reached number three on the UK chart last November.
> Joe McElderry: 'I'm okay with Simon Cowell axe'
Watch the music video for Joe McElderry's single 'Ambitions' below: