The Skyfall hitmaker was seen catching the music legend's London show last week.
And according to UK newspaper The Sun, the pair later met in Prince's dressing room to discuss a track for Adele's highly-anticipated third album.
'The reason Adele only stayed a short time at Prince's gig at Ronnie Scott's in London was because it was just a business meeting and she had to get home,' a source said.
'During their talks they got on like a house on fire. They want to work together for a track on her next album.'
Adele reportedly began working on the project last April. According to The Sun, both Phil Collins and producer James Ford are on board.
As the outlet reports, Prince hasn't been shy about complimenting the 25-year-old Grammy-winner.
'When she just comes on and sings with a piano player, no gimmicks, it's great,' he was quoted saying.
Adele's next album is scheduled for release later this year.
Recent reports also suggested she's gearing up to tour in 2015.
"At the moment the discussions are all about a 2015 tour of the UK and North America at least, possibly a world tour," a source told UK's The Daily Mirror last month.
"She has been back to work but is recording at her own pace. Her appeal has always been the quality of her music so she isn't about to rush release anything just for the sake of it."
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