The South Korean popstar - who shot to international fame earlier this year with 'Gangnam Style' - confirmed that he has been in discussions with the teen idol about a potential duet.
"Yeah, so we have a plan to do something together later but we doesn't have any details yet. But, sure – we gonna do some work later on," Psy told Capital FM.
Asked what he thinks the reaction to the collaboration would be like, he replied: "I mean of course you know, hundreds of millions combined [views of their videos] on YouTube – it's gonna explode, right?"
In September, Psy was signed to Schoolboy Records in America, which was founded by Bieber's manager Scooter Braun back in 2007.
Psy won 'Best Video' at the MTV EMAs 2012 on the weekend, while Bieber walked away with 'Best Male', 'Best Pop' and 'Best World Stage'.
Watch the music video for Psy's 'Gangnam Style' below: