The pair are both signed to Simon Cowell's record label Syco, but have yet to decide whose album the new material will feature on.
"I love James. Hopefully we'll get in the studio and do something," Labrinth told the Daily Star. "I don't know if it'll be for my album or his but we're excited to work together."
Meanwhile, Arthur and Labrinth will both play sets at Alton Towers live on July 6.
Labrinth recently told Digital Spy that he doesn't make music to reach number one, because he would lose sight of why he does his job.
"I don't really make music for chart positions," he said. "It's good that we could have one, but I think if we all get caught up in that we start making music for number ones, instead of actually making music."
Watch the music video for James Arthur's 'Impossible' below: