According to The Sun, the N-Dubz producer is already working on the track, which reached number 52 in the UK singles charts when originally released in 1988.
"Fazer loves Sting and that tune in particular," a source revealed. "He's been working with it in the studio and has given it a brilliant overhaul.
"What started as a bit of messing around has ended up as a track he wants out there. He's so chuffed that Sting agreed to it.
The insider added: "He's also desperate to work with Mick Jagger and is talking about getting in touch with him."
The 24-year-old, real name Richard Rawson, was recently been hired by Simon Cowell to produce this year's X Factor winning single.
Watch the video for Sting's 'Englishman in New York' below: