The Australian singer wants the hopefuls to have time to let their hair down following weeks of auditions for the talent show, and believes that a holiday on the party island will be perfect for the singers.
However, Dannii will be forced to make a difficult decision during their stay in Ibiza; she must whittle the six acts down to three, who will make it through to the live shows. Her contestants will then go head-to-head with those being represented by Simon Cowell, Sharon Osbourne and Louis Walsh.
"I'm thrilled to be going to Ibiza for The X Factor. But it's going to be tough," Dannii told the Daily Star. "The perfect star is unique. Talent, personality and a desire to be the next winner are the key ingredients. If we don't find a talent as big as last year's winner Leona, then we've failed.
"When it comes to mentoring the acts, the gloves will be off. I'd love to win. Just because I'm the new girl, I won't be a pushover."