The band's frontman told Digital Spy that the follow-up to 2009's The Liberty of Norton Folgate would be out in 2012.
Suggs said: "It'll definitely come out next year - hopefully we'll finish it this year. We were hoping to get it done but then we decided to postpone the whole thing because we weren't completely satisfied with what we've done so far.
"We're working on it and I think it's that thing... when you're young you have all the time in the world. We don't spend 24 hours a day working on music like we used to when we were younger, so you have to do it in batches - sporadic, intense."
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He added: "Before Norton Folgate we made an album of covers (2005's The Dangermen Sessions Vol. 1), and we were really trying to get back to the reggae, ska and dance roots of what we did when we first started."
Listen to the Madness cover of Desmond Dekker's 'The Israelites' below:
"Then we decided to make Norton Folgate which was a very dense, pop album," Suggs continued. "A British pop album. Now I think the next record maybe we'll do a bit of both.
"That's what we're trying to do - something you can dance to that also has density music-wise. That's the grand, maybe slightly overoptimistic plan."
Of the critical acclaim for their last record, Suggs said: "We put a lot of work into that record, six or seven years. It was a crossroads, where we could have carried on as an '80s greatest hits band, which is a very lucrative way to spend your life, or to really give it a go.
"We really gave it a go and it had its repercussions. People re-evaluated what Madness were. Certainly that record was the best reviewed we ever had. It was very rewarding."
Watch Madness play 'The Liberty of Norton Folgate' live below: