The Eurythmics musician co-wrote a track with the legendary folk musician for 'The Blackbird Diaries', as well as recording collaborations with Fleetwood Mac vocalist Stevie Nicks and country singer Martina McBride.
Dave said of the album: "This was my favourite time ever in the studio, I wrote most of the songs on the spot and recorded all of them in one incredible session lasting 5 days and nights."
Stevie's involvement comes after Dave leant his production and writing skills to her latest album 'In Your Dreams' and she wanted to return the favour.
The 'Sweet Dreams' musician - who has worked with many of the world's most highly rated musicians, including Ringo Starr, Bob Geldof and Gwen Stefani - has been especially busy of late, and is currently said to be working with Mick Jagger on the Rolling Stones frontman's first material since his band released 'A Bigger Bang' in 2005.
Mick's brother, Chris, revealed: "He's doing a record at the moment in Los Angeles with Dave Stewart, he called me last night telling me what he was doing."
'The Blackbird Diaries' will be released on June 27.