The producer and songwriter has revealed that he plans to re-schedule his Hit Factory event, which was cancelled earlier this month due to health and safety fears.
Waterman told the BBC: "We are going to do it again at Christmas. We are going to do two nights at the O2 [Arena], or at least one night."
He added: "I just have to convince [one of the artists] to stay here until at least Christmas Eve and we can do it all the way we want to."
The pair were due to perform their duet 'Especially For You' for the first time in 23 years alongside other acts signed to the PWL label, including Steps, Sinitta, Mel & Kim and Rick Astley.
Donovan later added that he was "extremely disappointed" and "frustrated" by the cancellation.
Watch the 'Especially For You' music video below: