A source told the paper: "Rod is a genuine living legend and exactly what the show needs.
"The details are still to be ironed out but it looks like he'll be at the auditions next month in London and possibly Glasgow because of his Scottish heritage.
"He's sold more than 100 million records worldwide so he knows exactly what it takes to succeed in the tough world of showbusiness, and hopefully he'll also be a big draw for viewers who might not have been fans of The X Factor before.
"It's a big coup to get him involved andSimon Cowell is absolutely thrilled."
The first auditions for the new series are set to begin next week in London and show boss Simon Cowell is said to be seeking a new permanent female judge to replace Kelly Rowland and join Tulisa, Louis Walsh andGary Barlow on the panel. Katy Perryhas been mooted for the role, although she is now said to be unlikely to be available.
The Mirror's mole added: "Katy was a big hit with viewers when she appeared on the show, but Simon didn't act fast enough to land her for this year.
"It looks like getting her now is impossible because of her other commitments."
The first audition is happening in Liverpool next Wednesday and the new judge needs to be recruited and in the city by Tuesday night.
"We have known there was an empty space to be filled for months, but it has become more and more obvious over the last 24 hours that nobody has any idea who will fill the empty slot," The Mirror's source continued.
"Simon had put all his eggs in one basket with Dannii Minogue, and now everyone is scratching their heads wondering who they can get.
"Nobody wants another boring last-minute filler like Carmen Electra, but it's almost impossible to get an A-list star with just a few days' notice."