The duo - who were behind the original 1985 single - are working on a new version of the track for its 25th anniversary, with all proceeds going toward aid relief for victims of the two devastating earthquakes which have hit Haiti in the last ten days.
The single and accompanying video will be recorded at the Nokia Theater in Los Angeles on February 1, the day after Grammy Awards, and the cast list is expected to include artists nominated and performing at the event.
A source said: "We expect that, as with the original, everyone will leave their egos at the door. Most of the Grammy nominees are expected to stay for an extra day after the show to record the single, and some are expected to fly in especially for it."
Usher and John Legend have already been asked to take part, and are expected to be joined by other singing stars including Wyclef Jean, Sting, Fergie, Stevie Wonder, Alicia Keys and Justin Timberlake.
The single is also expected to pay tribute to the late 'King of Pop', who died suddenly in June last year, and he may even appear on the final record, as he had hoped to include 'We Are The World' in his 'This Is It' comeback shows and a version of it was reportedly recorded in rehearsals for the show.