The reformed band will release Light Up the World in the UK on November 12, but the majority of the collection will be reinterpretations of classic festive hits.
"The success of the reunion was such a surprise and snowballed so quickly," Lisa Scott-Lee told the Daily Star.
"We weren't ready to do new material but we also didn't want our fans to wait another year, so we put an album together in weeks."
However, the new album's title track 'Light Up the World' is a new original recording and is available to download now.
Steps will support the new collection with a winter tour, which starts at Plymouth Pavilion on November 30.
Listen to Steps' new single 'Light Up the World' below: