The flamboyant star shot to fame after he was the runner-up on the eighth season of the TV talent show.
There are reports that Jennifer Lopez will not return as a judge for a third season, so show bosses are searching for a suitable replacement.
"They have been talking about Adam for over a month," a source told E! News. "He personifies the show, and will be a popular choice right from the start. He knows what it''s like to be on the receiving end of the judges'' comments, he has a human touch, and they know they can''t go wrong if they bring him on. He would be able to bring a unique perspective to the show. People love him."
It has also been reported that Steven Tyler's future on the show is 'up in the air'. However, American Idol bosses are still hoping they can convince Jennifer to return for the new series: "I don''t know if they can afford Jennifer, but they have let it be known that she has a guaranteed spot if she wants it," a source explained. "She appeals to everyone so the big bosses are in favour of keeping her on."