The singer will release her upcoming 12th studio album through the Universal-owned company, who also have Lady GaGa and 50 Cent on their roster.
The deal is reported to be worth $1 million (£648,000) per album for Madonna, but the star will continue to tour under a contract with Live Nation.
A source told The New York Post: "It's just about keeping relevance so that she can tour. She is still in the demo phase, but the idea is to get the first album out early next year."
Madonna is expected to release 'Give Me All Your Love' featuring Nicki Minaj and MIA as the trailer single for her new album.
The trio will reportedly perform the track together live for the first time during the Super Bowl halftime show, which takes place on February 5, 2012 at the Lucas Oil Stadium, Indianapolis.
'Give Me All Your Love' is expected to be released in February, while Madonna's new album will follow in the spring.
> Madonna on 'Give Me All Your Love' leak: My true fans wouldn't do this
Watch the music video for Madonna's hit 'Hung Up' below: