The veteran singer and the guitarist met before Christmas to discuss writing their first material together since the 60s, when Rod was part of Jeff Beck's backing band, recording the albums 'Truth' and 'Beck-Ola' together.
Rod told Rolling Stone magazine: "Jeff and I had a lunch together just before Christmas. He's going up to record some tracks with his band in February in San Francisco and to send them over to me, so we're making progress."
Arnold Stiefel, Rod's manager added: "They have some really clever things planned - it's mind-f***ing stuff."
The tracks will be the first new musical output from 'Maggie May' singer Rod, 66, since his 'American Songbook' series of cover versions, which he has released since 2002, and the first original songs he has written since his 1998 album 'When We Were the New Boys'.
Meanwhile Rod has also reunited with another former member of 66 year old Jeff's backing group, Ronnie Wood, who also left the band at the same time to form Faces in 1969.
The pair had dinner together on Monday (31.01.11), with Rod giving Ronnie, 63, a friendly air kiss to The Cheek for paparazzi as they left, sparking rumours they may also play live again together again soon.
Rod has also announced he will play live this year on 'The Heart and Soul Tour', with Stevie Nicks, which will see the performers appear across the US, and launches on March 20 in Florida.