The 'Promise This' singer is said to be attending a Los Angeles bash alongside the R&B star, who has been getting her in the partying spirit with invites to his Christmas concerts.
"Taio is starting to sort out his New Year's Eve and if he's performing, like he did last year, he wants to party with Cheryl," a source told OK. "In the run up to Christmas, he's got two shows in California, which I hear he's invited Cheryl to attend."
Cruz, who split from girlfriend Roxy Horner earlier this year, is apparently hoping that the celebration will help Cole finally let go of her X Factor USA troubles.
"Taio is hoping to lay on a night to remember, as he and Cheryl have both had a tough 2011," the insider continued. "He'll want to have the best party night - they'll both be keen for 2012 to start."
Cruz denied reports linking him to Cole in November, insisting that the pair had only been working on new material together.
Cole is also rumoured to have dated Alex Da Kid and music producer Patrizio Pigliapoco since arriving in the US.