The singer has apparently asked Muse to perform alongside him at the sporting event's opening ceremony at the Olympic Stadium in East London next July.
"Elton has never put on subtle live shows but he wants the Olympic gig to be even more overblown and spectacular than ever," a source told The Sun.
"He's been a huge fan of Matt Bellamy's band for years and is desperate to collaborate with them."
They added: "A show during the London Olympics will be the ideal opportunity. And with Muse's reputation as one of the best live groups in the world it's bound to be special."
Previous reports have suggested that former Beatles star Sir Paul McCartney will open the ceremony, which will take place on July 27, 2012.
Girls Aloud, the Spice Girls and Coldplay have reportedly also been approached to take part in the celebrations.
Watch Tinchy Stryder and Dionne Bromfield's music video for 'Spinnin for 2012', which is the official single for the 2012 Olympic Torch Relay, below: