The producer - who previously teamed with the Britpop legends on their 2002 LP '13', their last with guitarist Graham Coxon - revealed on his twitter account that he is going into the studio with frontman Damon Albarn later this week.
He wrote a message to record label World Circuit Records about their artist Fatoumata Diawara on his twitter account which read: "I just found out that she [Diawara] has done tracks with Damon A, who I'm in the studio with from Wednesday!"
Damon - who is joined in Blur by Graham, Alex James and Dave Rowntree - has many side projects, including Gorillaz and The Good, The Bad and The Queen, but William seemed to suggest he would be working with the 'Parklife' hitmakers as he also posted a message to the guitarist.
He tweeted: "Hi Graham! Loving the guitars you laid down! Vocal session March 3!"
Blur have been largely defunct since 2003, apart from a series of one-off shows in 2009, but will get together to perform as they accept the Outstanding Achievement Awards at this year's BRITs ceremony next month.