The rapper claimed that the trio - also consisting of Dappy and Tulisa Contostavlos - will re-band, despite reports that they have fallen out.
Fazer told MTV News: "We are on hiatus, we're all good. We are just taking some time out.
"In the last four or five years, I don't think there has been a period for more than a month when we haven't been on TV, had a video out, a single out, an album out, our own TV show – we've been dominating the TV and the media."
He added: "The only thing for us is to keep our fanbase going and to keep people excited about the whole N-Dubz thing, so we thought take a break, give people a chance to breathe but at the same time, don't give them a chance to breathe.
"Tulisa has been killing it on The X Factor, Dappy has been killing it with his solo records and I'll be doing the same this year, so it gives everyone a chance to capitalise on their own fanbases as well as the N-Dubz one."
He concluded: "Then we will come back collectively next year to record another N-Dubz album."
Fazer's claims follow Dappy's recent revelation that he no longer speaks to Tulisa as they "both wanted to be the boss".
> Fazer: 'I'm still working on Tulisa's solo album'
Watch the music video for N-Dubz's 'Playing With Fire' below: