The singer-songwriter, who scored a top three hit last month with 'The A Team', said that he is friends with band member Harry Styles and has penned a track for their forthcoming LP.
"Harry's a lad - I was with him last night actually. Being in music you're quite segregated from everyone and you're always busy doing promo," he told In Demand with Alex James.
"When you're on the same promo run as someone or in the same kind of situation as someone you grow quite close, friendship-wise. He's a very cool guy."
Asked if he was working with the group on their debut record, he said: "I have a tune that I think they're recording for their album that I wrote. They're really cool guys. If you take the boyband element out of it, they're just teenage dudes."
Watch the video for Sheeran's new single below, called 'You Need Me, I Don't Need You', which features on Digital Spy's playlist: