The rapper confirmed that she has recorded a song called 'The Bitch Is Back' with Osbourne, which reworks Sir Elton John's 1974 hit.
She told New York Post: "I am telling you first that Kelly Osbourne and I are working on a record together!
"It's titled 'The Bitch Is Back'. It is a blend of British rock and rap and you won't believe your ears when you hear it!"
Kim recently fell out with Azealia Banks after Banks wrote a verse for her to rap on her upcoming album Broke With Expensive Taste.
She said: "Everyone knows Lil Kim doesn't write her own raps and I saw this as a faster more efficient way of getting the track done."
Meanwhile, Osbourne experienced brief solo success between 2002 and 2005, releasing two albums and hit singles 'Papa Don't Preach', 'Shut Up' and 'One Word'.
Watch Kelly Osbourne's 'One Word' music video below: