The electro duo - made up of Elly Jackson and Ben Langmaid - have been in the studio with the 59-year-old guitarist, who has previously produced hits for stars including David Bowie and Michael Jackson, and he is impressed with how ''cool'' they are.
He said: ''I totally fell in love with La Roux, it was just insane. I only work with people who are monsters, and I was impressed with how organic and cool Elly was.
''She's the person that's in my cross-hairs right now. British artists have a stronger knowledge base of music, it's always experimental.''
Nile was also behind disco classics such as 'We Are Family' and 'Le Freak' with his group Chic, and Elly admitted brushing up on her knowledge of the genre while making the album.
She told the Daily Star newspaper: ''I've been collecting rare disco from around the world, unknown but massive uplifting songs with real emotion.''
Elly has previously claimed the band are trying out a new, sexier sound for their follow up to their self-titled debut.
She said: ''The music is a lot sexier. But a lot of music that's quite sexual is aggressive. The music itself doesn't sound sexy - it's more people shouting, 'look at my bum! Look! I'm not turned on by it, I'm terrified.''