The 'Maggie May' hitmaker, 73, and the 'Total Eclipse of the Heart' singer, 63, are both famous for their husky vocals and have decided to join forces after the latter ''dared'' her peer to make an entire record of classic hits by likes of Queen, Sir Elton John and The Beatles, and even their own brand new material.
An insider told The Sun newspaper's Bizarre column: ''Rod and Bonnie have massive fans of each other for donkey's years, but due to their crazy schedules have never had a chance to record together.
''The story goes that Rod called Bonnie up out of the blue and said he wanted to see what their voices sounded like together in the studio.
''But Bonnie told him that she wanted to go even further, that it was 'all or nothing' and dared him to record a whole album worth full of songs.''
And as well as plans to take on Freddie Mercury and co's difficult-to-nail hit song 'Somebody to Love', they may even record a rendition of Barry White's 'White Christmas', meaning the album could be set for release in time for the festive season.
The source added: ''Rod reckons that they could both nail Queen's bluesy Somebody to Love and there's even talk of a tongue in cheek cheesy Christmas cover like White Christmas.''
Meanwhile, Rod - who releases his first album in three years, 'Blood Red Roses', on September 28 - recently insisted it isn't ''too late'' for the Jeff Beck Group to reform.
The 'Da Ya Think I'm Sexy?' hitmaker was an original member of the band, which also featured guitarist Jeff Beck, Ronnie Wood on rhythm guitars and various drummers and bassists, until they split after two years in 1969 and he'd like to see them put their differences aside and go out on the road again.
He said: ''I'm still in contact with Ron. He sends me videos of his kids.
''But with Jeff, we did try and get together again. I still don't think it's too late for us to shrink our egos a little bit and do it.''
Rod and Ronnie went on to team up with Small Faces members Ian McLagan, Ronnie Lane and Kenney Jones to form The Faces and though both Ian and Ronnie Lane have passed away, the 'Maggie May' hitmaker would love to get back on the road with drummer Kenney and the Rolling Stones guitarist if their schedules will allow it.
Asked if he's still in touch with Kenney, Rod said: ''I might invite him over for Christmas once or twice if we're having a party at the house but we don't keep in touch like me and Ron do.
''There's always a chance of the Faces getting back together.
''Just every time I'm about to start a tour, the Stones are going to start a tour, then I start and they star. We can't go on forever. But I said that 20 years ago.''
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