The former Fifth Harmony star is currently supporting the 'Delicate' singer on her 'Reputation Stadium Tour', along with Charli XCX, and the pair are believed to have been discussing ideas for the follow-up to the 'Havana' hitmaker's chart-topping self-titled debut LP.
An insider told Metro.co.uk: ''Taylor is helping her with some of the tracks but they haven't got round to recording yet.''
According to the source, Camila's record label, Sony, are keen for the 'Never Be The Same' hitmaker to drop a new album as soon as next year.
They added: ''Camila's first album was a huge success globally and brought in close to half a million pounds for the label when cash from her touring, album streams and singles sales are tallied.
''Sony has artists like Adele, Beyonce and Pink, but in Camila they see the opportunity to pull in a new generation of music listeners and want her to release a brand new album next year.''
Camila, 21, and Taylor, 28, are reportedly planning to record their ideas once the tour finishes in November time.
Another insider added: ''Excitement about Camilla at the label is at all-time high because her reviews have been through the roof.
''They want her to record and release a new album in time for next summer to capitalise on the hype she's receiving. We're told she's been writing songs while on the road with Taylor and will record once the show wraps. This is her time.''
And there's no doubt Charli - who has penned songs for the likes of Rita Ora, Iggy Azalea and Britney Spears - is involved too.
The 'Boom Clap' hitmaker previously said she's hoping to jump into the studio with her tour mates.
Ahead of the concerts, she said: ''I'm really excited to be around all this female energy. I think it will be so powerful. Both Camila and Taylor are such excellent songwriters so in a dream world, we would get some studio time too. That would be awesome.''
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