The trio - consisting of Keisha Buchanan, Mutya Buena and Siobhan Donaghy - allegedly met up last year and decided to reform and record new material, according to Popjustice.
A spokesperson for Buchanan this morning told Digital Spy: "Keisha has been working on a number of exciting projects both old and new. She is in the final stages of completing her much-awaited solo album and believes her fans will be equally excited with what's to come."
Emeli Sandé, MNEK, Asterix, Craze & Hoax, Tanika, Mojam and Naughty Boy have been listed as some names they are thought to be working with.
Girls Aloud hitmakers Xenomania have yet to collaborate with the group, but it has been noted there are plans for them to work together in the near future.
Buchanan has also hinted that they are working with Professor Green on new material. She tweeted: "Hanging out in the studio with @professorgreen and two lovely ladies with bags of talent."
Buena added: "Tunnnnnnnnne! What a banger. I could pee myself with excitment lol but I won't. (sic)"
It has also been suggested that the threesome will not be allowed to call themselves the Sugababes and plan to decide on a new name.
They have yet to sign to a record label or secure a publishing deal, but it is thought they have entered discussions with three potential labels.
Last summer, Buena won the rights to use the Sugababes name on goods listed under Class 16 of the EU Trademark act, which includes "paper, cardboard and goods made from these materials".
Meanwhile, Heidi Range has told Digital Spy that the current Sugababes lineup have not split up, but are not concentrating on music at the moment.
Watch the original Sugababes perform their hit 'Overload' live on Top Of The Pops below: