The 'Earthquake' hitmaker and producer has been in the studio helping the singer - who shot to fame winning 'The X Factor' in the UK last year - on his debut album, and is blown away by his voice.
He told MTV: ''So far, from what I've heard from James Arthur sounds amazing.
''I think I brought the soul to his album, let's put it like that.
''His voice works on anything. I'm very sure he's gonna smash it and the record that we made, I'm sure it's gonna be massive.
''It's going to be very powerful, I'm very very exited about this album.''
James has been open about the fact he suffers panic attacks in the past, and had been struggling with fame, although hopefully by the time he returns with his debut he will have his nerves in check.
He previously said: ''I'd been thinking that I would have to leave ['The x Factor'] because of my panic attacks. When I had one a few weeks ago I was worried I would have a nervous breakdown. It was horrible. The show can be very full-on.''
Labrinth is also busy working on his own second album, and getting excited about how some of the tracks are sounding.
He added: ''The album is coming along amazing, I was just recording some brass and double bass yesterday on the record I'm putting together.