The 'Shape of You' singer recently revealed that he and John are collaborating for an all-new Christmas song that will hit the radio waves in December, reported People magazine.
Though Sheeran initially played coy regarding the specifics of the collaboration in an interview with Dutch radio station NPO Radio 2, he eventually opened up, calling the track "f--ing great."
"Elton rung me on Christmas Day to say Merry Christmas," Sheeran said, adding that he talks to the star "almost every single day."
"He rung me on Christmas Day and he said, '"Step Into Christmas' is No. 6 in the charts, and I'm 74, and I'm still having f--ing chart hits, this is great! I want to do another Christmas song, will you do it with me?'"
Though Sheeran said he wasn't initially keen on John's proposal, he eventually decided to dive in on the track, which is just him and the 'Rocket Man' singer.
"You don't know if you'll still be there tomorrow, everything can change overnight," he said, according to NME. "I may not be here tomorrow. Why shouldn't I grab this opportunity?"
Sheeran is currently gearing up for the release of his fourth full-length album, titled '=' (and pronounced Equals), which will come out on October 29.
"= (Equals) is a really personal record and one that means a lot to me," he said in a statement in August.
"My life changed greatly over the past few years -- I got married, became a father, experienced loss, and I reflect on these topics over the course of the album. I see it as my coming-of-age record, and I can't wait to share this next chapter with you," added the singer.
The four-time Grammy-winning singer, who was also recently announced as the Mega Mentor for season 21 of 'The Voice', is married to Cherry Seaborn, and the couple welcomed daughter Lyra Antarctica in August 2020.
John, meanwhile, has plenty more star-studded collaborations up his sleeve on 'The Lockdown Sessions' album, which comes out on October 22 and will feature songs with Stevie Wonder, Dua Lipa, Lil Nas X and more.
The veteran star's enduring holiday hit 'Step Into Christmas' was released in 1973.