The singer would not rule out a new album from the heavy metal group, but insisted that talks are at a very early stage.
When asked about the possibility of a reunion, Osbourne told Billboard: "Yes, it's a very, very strong possibility."
"It's in the very early stages, so we haven't recorded anything yet. If it works out, it'll work out. If it doesn't, I'll keep doing my thing."
Meanwhile, Osbourne confirmed that he has no desire to make a TV programme again, despite his wife Sharon Osbourne regularly appearing on shows in America.
He explained: "Sharon loves TV and I don't have any problem with that, but I just don't like doing it.
"It's alright doing an ad or a quick spot for the camera, but I just don't like doing the TV shows."
Fellow Black Sabbath member Tony Iommi triggered initial speculation of a reunion in August, but the guitarist was quick to deny the claims shortly after.
> Black Sabbath reunion may still happen, says Tony Iommi's manager
Watch the music video for Black Sabbath's 'Paranoid' below: