The pair - who both fronted the band playing guitar and singing - have had a turbulent relationship since reuniting to play two festival shows in 2010, but have recently started working on tracks again.
Pete explained: ''He took away some of my stuff to put some riffs on. He said he's got a few ideas but he's short of lyrics, so I gave him a journal.''
When asked if the band has a future, he added: ''Yeah, a future where we get together and make really good music.''
He also said the pair - who are joined in the band by John Hassall and Gary Powell - have ''grown up'' and have a much better relationship now they are older.
Pete told NME magazine: ''I really feel like it's easier being in his company now than it was in our heyday. I hate to say it, but it's true, we've kind of grown up. Maybe it's a negative thing that there isn't that tension. But I don't think it is. It's great that we can both naturally amble in such a direction that we end up on the same path again and end up making music.''