Arthur, whose debut single 'Impossible' has sold over 897,000 copies since its release, will be going into the recording studio with Fraser T Smith according to The Sun.
Smith has also worked alongside Florence and the Machine, Craig David, Leona Lewis, James Morrison and Dappy.
The newspaper reports that Smith could oversee the entirety of Arthur's first album.
Middlesbrough-born Arthur, 24, lost out on the Christmas number one spot to The Justice Collective - featuring the likes of Sir Paul McCartney and Spice Girl Mel C - with their version of 'He Ain't Heavy, He's My Brother'.
Meanwhile, 'Impossible' is the fourth best-selling debut single from a winner of The X Factor, bettered only by Alexandra Burke, Matt Cardle and Shayne Ward. The track returned to the top of the chart this week.
Watch Arthur discuss his X Factor victory and first single below: