Sir Elton John is recording a dance album.

The music legend has reportedly sparked a bidding war between record companies who are desperate to release his new music - which he has worked on with Australian producers P'Nau, known for their work with Empire of the Sun.

A source said: "Elton says he's writing his most exciting new stuff for years - possibly decades. Working with P'Nau has got the creative juices flowing again. They have got a load of big companies sniffing around."

The 'Your Song' hitmaker is not the only veteran star to take their music in a different direction.

Sir Paul McCartney released the album 'Electric Arguments' under the title of his side-project The Fireman with music producer Youth.

Speaking about the LP, the former Beatles star said: "Originally, when I started the group, I used to joke with Youth in the studio, where we'd be putting together these midnight-dancey, ambient records, saying to him, 'This is like everything they won't allow me to do in the studio, what I won't even allow myself to do in the studio. This isn't like working, it's like goofing around.' "