George Michael, who has had his battles with major record labels in recent years, is entertaining a unique offer from the U.K. arm of the Universal Music conglomerate.

Billboard reports that the former Wham! singer is close to inking a deal that would cover the release of one single only. Based on how the label performs in terms of promotion, Michael would then have the option to release a full album with them.

If the deal materializes, the single would be released during the first quarter of the new year, the report said. (Universal Music Canada had no additional information about whether the deal would apply outside of the U.K.)

Michael has previously been signed to DreamWorks and Virgin. His last release was the 1999 covers collection "Songs For The Last Century," which sold 3.9 million copies.

Earlier in his solo career, he recorded for Sony, but was later involved in a nasty, protracted dispute to release himself from the company's control.

Billboard said Michael had enjoyed a good relationship with Virgin and had been expected to re-sign with the company, up until the departure of parent company EMI's boss, Ken Berry.

The report said Michael has held talks with Warner, Sony and Zomba.

Michael's website (www.aegean.net) reports that he is continuing work on his next album, described as "a very up album and George at his very best ... his best work yet." (More on George Michael)