The Girls Aloud star left the British show to join The X Factor USA but was apparently replaced on the panel by Pussycat Dolls star Nicole Scherzinger after two weeks.
Writing on Twitter, businessman and The Apprentice boss Sugar suggested that Cole would probably return to her previous position in the UK
"Sky news is running the Cheryl Cole story seems might be true she is out of US X-Factor (sic)," he said. "I am sure if true she will be back in UK version."
Take That songwriter Gary Barlow is the only judge currently confirmed for the British show.
Dannii Minogue has officially quit the programme and pop singer Lily Allen has ruled herself out of joining the talent contest.
N-Dubz member Tulisa Contostavlos is said to be back in the running for a position on the panel.
Show boss Simon Cowell is reported to have called a 'crisis meeting' over "the mess" the UK show has been left in since he departed for America.
> Cheryl Cole 'X Factor' USA: Where it all went wrong
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> Cheryl Cole, Girls Aloud to 'X Factor': Pictures
> The X Factor USA full coverage
Watch the latest promo for The X Factor USA featuring Cheryl Cole below: