James, who debuted his highly-anticipated new single 'You're Nobody 'Til Somebody Loves You' on radio stations yesterday (9 September), revealed that the pair are "writing songs together".
"I've played a couple of things to Nicole and she loves them," he told the Daily Star. We're writing songs together so I'd absolutely love to be on her next album. I think it's a possibility."
James, who released a teaser of his new single this week, won the ninth series of the ITV talent show in December, securing the public vote over runner-up Jahmene Douglas.
He added: "I felt jealous watching the first show of the new X Factor series seeing Nicole complimenting other people - it's weird. That's my mentor. We got really close."
James' single release comes almost a year since he won the show, but it seems it was worth the wait, as fans of the rising star gave their verdict on Twitter yesterday.
One fan said: "Just had a listen to @JamesArthur23 new song and all I can say is I love it. His voice gives me goosebumps!" Meanwhile, another commented: "Was not expecting that from a X Factor winner. It's a tune to be fair."
Posting a personal video message to his supporters, James apologised for the delay of his single, adding, "Thanks for sticking with me."
The Middlesbrough singer's new track is taken from his forthcoming self-titled debut album, James Arthur, which will be out in November.
'You're Nobody 'Til Somebody Loves You' is due for release on 20 October, and James Arthur is due for release on 4 November.
Watch James' personal message to fans below:
From Steve Brookstein to James Arthur: X Factor winners through the years:
Copyright: WENN Harsha Gopal