The 18-year-old star - who left rehab in January after seeking treatment for "emotional and physical issues" in November - is in talks with producers of the highly-anticipated TV talent show to perform on one of the live shows after a judging role was ruled out.
A source said: "She has, in fact, had meetings concerning the matter, but chances are very slim that she would be joining the cast as a judge. They think, because of her age, she might not be the right fit for a judge. But they have spoken about having Demi come on to perform during the season, and have discussed her having her comeback performance."
The show - created by Simon Cowell - is set to premiere in September and insiders believe this is perfect for Demi as it will give her the chance to put all her problems behind her and focus on her career.
Demi - who entered rehab after she allegedly punched a backing dancer - recently revealed she was excited about the prospect of returning to work.
In a video message thanking fans for their support, she said: "I wanted to let you guys know that I'm excited to get back to work and I can't wait to tell you what the future holds. I can't wait to see you guys in person and thank you all individually. I love you all and I couldn't have done this without you."