The Moroccan hitmaker has come on board the boyband's comeback LP, which will be their first release since third collection Guilty topped the UK album chart in 2003.
"We're really busy in the studio at the moment," Costa said. "We've been recording some good tracks. Touch wood, we're hoping to release next year.
"RedOne has come on board and is executive producing the album now. We're real, real chuffed that he has taken the time out from doing his other projects, which he is so famous for."
Costa added: "He's come on board to help us. It's just great. Really, really good stuff. I'm so pleased to be part of the Blue magic."
"All is amazing. The banter is amazing. It's great to be making music," the singer said.
Earlier this year, Duncan James and Lee Ryan talked to Digital Spy about the new material they have been working on.
> Blue turn to country music for new album
Watch Blue's video for 'I Can' below: