The 26-year-old, who is currently working on her first solo album, performed during last year's show as part of Girls Aloud. However, she is said to be feeling nervous at the prospect of taking to the stage alone.
"It is a no-brainer for Cheryl to launch her solo career on the show," a source told The Mirror. "Girls Aloud performed last year when their single 'The Promise' was in the charts.
"But this will be a totally different experience for Cheryl - she won't have the others for support. She is nervous because she will be performing for her peers - and there is always the fear that Simon may say something catty."
The release of Cole's LP will reportedly coincide with 2008's X Factor winner Alexandra Burke's album.
The insider added: "It will be interesting to see who gets the most viewers. This has never happened before so it'll be strange seeing them going head to head. They aren't keen on competing. They want each other to do well."
As previously announced, Cole remains the bookies' favourite to win The X Factor this year.