The rap magnate spent time with the 'Levels' singer at his Made in America festival - where Jay's wife Beyonce performed - over the weekend and was said to be impressed with the young star.
A source told HollywoodLife.com: ''Jay Z is always a forward thinking businessman and always wants to be on the cutting edge of music, business and anything else that will make him the entrepreneur that he is -- and his next project is Nick Jonas.
''He wants to record with him and he wants Beyonce to record with him. He sees Nick as the next Justin Timberlake.''
Nick, 22, was recently rumoured to be getting flirty with his ex-girlfriend Selena Gomez after they were spotted together at an after-party for the MTV Video Music Awards.
A source said: ''They were very flirty. He kept whispering in her ear.''
Nick and Selena, 23, had an on-again, off-again relationship for two years until 2010 and recently had dinner together with a group of friends.
The heartthrob said: ''We kind of ran into each other a couple of weeks ago, like walking in Venice [California]. We were both with separate groups of friends and we ran into each other.
''I put a dinner together with a bunch of really great people, like the Haim girls, who I love. They're awesome. They're the best. It was a big group of people and we all had a great time. We connect in that sense. It was nice to connect and just catch up. I'll leave it there!''
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