The singer, who was sentenced to eight weeks in jail for drug-driving earlier this year, is said to be set to join Cheryl Cole on the panel when the show kicks off next year.
A source told The Sun: 'George is going to take the job. It's an amazing opportunity to get back in the limelight and reverse his recent bad spell. Simon knows that Americans love him. He is as big in the US as he is over here. He is a true star and has the wit and experience for the job. It's the perfect platform to resurrect his career.'
X-Factor boss Simon Cowell is said to have offered Michael a contract worth £1million and is also believed to have contacted Rolling Stones frontman Mick Jagger and former Oasis rocker Noel Gallagher about appearing on the show.
The source added: 'Simon is determined to have a panel of amazing judges.'