The former Wham! frontman presented the 21 singer with a Brit Award last week and is believed to have discussed a collaboration with her, according to The Mirror.
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"George is working on his album for the first time since his life-threatening illness and he's in great shape," an insider claimed. "It is no secret that he adores Adele.
"He even left his boyfriend Fadi Fawaz in Australia for three days while he flew in to present Adele with her Brit."
Michael spent almost a month in hospital in Vienna battling pneumonia and was allowed home just before Christmas last year.
The source continued: "Adele has been an admirer of George's tunes for as long as she can remember, and was so touched that George presented her [with her] Brit Award."
Michael is reportedly planning to reschedule the cancelled dates on his 'Symphonica' tour for this autumn.
He has previously collaborated with singers such as Mary J Blige and Aretha Franklin.
Watch the music video for 'As' by George Michael and Mary J Blige below: