"Sharon will be an 'X Factor' judge and it is only a matter of days before the deal is finalised," a source told the paper.
"She is being paid a hefty sum of £2 million as Cowell is desperate to have her on the show. She is also expecting to earn half a million more in book and publishing deals. There is no way she would turn down such a well-paid job."
Sharon - who has recently been hitting the headlines for her marital problems with rocker husband Ozzy - left the show following its fourth series in 2007, after a bust up with fellow judge Dannii Minogue. She was replaced on the panel by Cheryl Cole.
She's set to join Louis Walsh and Gary Barlow on the panel, but a question mark still hangs over the fourth judges spot, with latest reports claiming Nicole Scherzinger has ruled herself out, and Tulisa will be spared from her rumoured axing.
Despite numerous stories Tulisa had been ousted from the show, it is now thought she could still serve as a judge for her third consecutive series, after Nicole's apparent decision to focus on her music career.
“Nicole is first choice but it looks like she is now out of the running, so Tulisa has a chance. But she will have to change her ways, we can’t have all the Twitter nonsense.”
Simon Cowell has previously promised to "mix up" the judging panel to reverse last year's drop in ratings.