The award-winning singers have reportedly met up and discussed the prospect of a collaboration, last week, at his secret London gig at Ronnie Scott's.
Adele, 25, was spotted at the nightclub on Monday night, and was said to have had a brief discussion about the recording with Prince, 55, before he entertained the packed out venue, which included VIP revellers Rita Ora, Kate Moss and Stephen Fry.
Duet: Prince and Adele are reportedly set to record a new single together for her forthcoming studio album
Comeback: Prince has been performing in a number of secret gigs across the capital
They added: 'They wanted to work together on a track for her next album,' but a spokesman for Prince has denied the claims, stating it is 'not true. She just came to enjoy the show.'
Adele is scheduled to release her third studio album this year, and has already enlisted a host of celebrated producers and artists to help with the record. Phil Collins confirmed earlier this year that he has already begun writing with her.
'I've just started to work with Adele. She contacted me to write together,' the former Genesis drummer told Inside South Florida.
Flying visit: The British singer reportedly popped by his show at Ronnie Scott's last week to discuss the potential track
'I wasn't actually too aware [of her]. I live in a cave [but] she's achieved an incredible amount and I really love her voice and I love some of that stuff she's done. So, to me, it's always an eye-opener. Educational.'
Also linked to the album are James Ford and Kid Harpoon, who have previously worked with The Arctic Monkeys and Florence + The Machine, so will no doubt bring a different edge to her sound.
Three tracks written with long-term collaborator Paul Epworth didn't make the cut on 21, but could very much appear on this third offering.
William Orbit - who has worked with Madonna and Britney Spears, confirmed this year he would also be writing with the singer.
Upcoming: Adele is expected to release her third
studio album this year, which was also feature a cover of INXS's Never
Tear us Apart
Big names: Phil Collins has confirmed he has been working with Adele, as has producer William Orbit
She told the newspaper in 2011: 'I plan to do a cover of the INXS hit 'Never Tear Us Apart' which is probably my fave song of all time. The whole album will have quite a live feel to it.'
But despite the more diverse producers on the project, Adele maintains it will still be very much of the pared back style of her first two albums.
'It won't be a big production,' she told Q magazine. 'I want it to be quite acoustic and piano-led. I want to write it all, record it all, produce it all and master it on my own. I think it'll take a lot longer because I want to do it this way.'
Prince's comeback is also marked by a new album, recorded with his all-female band 3rd Eye Girl.
Speaking to Rolling Stone magazine, bassist Ida Neilsen said: 'The album was completely recorded live, analogue, old-school.
'It's going to pull something inside of you that you may not be feeling listening to music these days.'
He has already released on iTunes Pretzelbodylogic, and has performed another track (expected to be released on his 26th studio album) during a guest appearance on TV comedy series New Girl.
MailOnline have contacted both Adele and Prince's representatives for comment.
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