The 77-year-old singer is reportedly working on a new song with the group as she loves "reinvention" and being able to "melt" musical genres together.
A source told The Sun on Sunday: "Diana might be 77 but she is determined to push musical boundaries and challenge herself. She loves reinvention and melting genres together. She’s really excited to work with Tame Impala and is ecstatic with the track – she can’t wait for fans to hear it."
Diana is set to release her first album of original music in over two decades later this year.
She said in a statement: "This collection of songs is my gift to you with appreciation and love. I am eternally grateful that I had the opportunity to record this glorious music at this time."
Diana has co-wrote her album with a string of famous songwriters including Jack Antanoff, Amy Wadge, Jimmy Napes, Troy Miller, Freddie Wexler, and Tayla Parx.
She added: "I dedicate this songbook of love to all of you, the listeners. As you hear my voice you hear my heart. 'Let Love Lead the Way.'"
In 2019, Diana teased that her next album will be upbeat because she doesn't want to "sing the blues".
She said at the time: "I'm getting ready to go in the studio and do another album and I want to do songs from where I am at - is that the right English? - at this point in time in my life because I feel so incredibly grateful and appreciative of you. I don't want to sing the blues. I want to sing songs that really speak to you and where I'm at at this time in my life, and optimism, and positive."
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