Simon, 55, has made a fortune from his joint venture with Sony Music Entertainment, Syco, and has branded out into television with the launch of several successful talent competitions – including The X Factor.
After being made executive producer of the ITV show this year, Cheryl, 31, has admitted that Simon has told her she'll be taking the reigns one day.
She told ES magazine: "He's saying that himself. He feels it's happening and he's proud of it.
"I love nurturing talent. It's what I want to do with my future, management, developing an artist."
Because of her time in the music industry, both as a performer and a judge, Cheryl feels she's more than qualified to take over.
"I understand from both sides," she continued. "I've learned from the execs how cut-throat it is, as well being a performer, which Simon doesn't because he's never done it."
Suggesting that she has more empathy for X Factor hopefuls, Cheryl insisted the minimum age be raised back up from 14 to 16 this year.
She added: "Simon thinks if you're a star and you're ready, you're ready no matter what age you are."