Queen's Brian May and Roger Taylor will develop songs that the pair recorded in 1983 at Jackson's home in the US.
"The Michael Jackson estate are happy for us to go ahead with the music. But it's not something that we can rush," May told The Sun.
The 64-year-old guitarist insisted that the project is not financially motivated, adding: "I don't work on things with the aim to make money or for promotional reasons.
"I work on things with the view 'to let's see how it goes'. When it is something we feel is worthwhile, then it's nice if we could get it out there."
Listen to a demo of 'There Must Be More To Life Than This' by Jackson and Mercury below: