The English performer is currently looking for a record label.
Cavanagh spoke of her plans recently with the Liverpool Echo.
The 19-year-old plans to move to Los Angeles to record the new album, and has been working with the reality show's Nathan Porter.
She said: "There's not a lot to do where I am. But in LA there are labels and writers I can work with so I'm excited about moving."
"It's all about finding the right song," Cavanagh explained when discussing the search for a writer to help her with the album.
"I'm working on writing my own songs and I'm trying to put my own stamp on it."
Watch Hollie Cavanagh singing 'Bleeding Love' in a clip from Live! with Kelly below:
Photo gallery - American Idol season 11 final:
Copyright: Fox Michael Becker