He is currently a judge on the US version of the show but is due to come back to the UK to get the show ‘back to it’s best.’
A source confirmed to a UK newspaper: “Cowell is determined to get the show back to it’s best. He’ll sign the deal very soon but has told the team he’s on board. Everyone’s over the moon.”
Simon, 54, is also rumoured to be moving back to London permanently, bringing with him partner Lauren Silverman, 36, who is expecting their first child together.
The source added: “His primary home will be in London, although he will keep his LA residences. Lauren will also move over here but split her time between London and New York where her son is based.”
It is thought that US X Factor bosses want Simon to keep is judging commitments on their show, and split his time between there and the UK version but Simon has refused.
Simon and Lauren’s baby is thought to be due next month and, although they will be living in the UK, it is expected that the baby will be born in New York.
According to reports, Simon has already had a nursery built in his London home ready for their baby’s arrival, complete with a mural.
Ratings for the UK X Factor have seen a drop over the last couple of years, with this year’s winner Sam Baily’s victory being watched by 9.6 million viewers which is the second lowest ever for a final.