The Smiths are "closer than ever" to a reunion.
The British alternative band – who were hugely popular in the 80s - are believed to be trying to put aside their differences to headline California's Coachella Valley Music and Arts Festival next April.
Former frontman Morrissey – who went on to enjoy a successful solo career following the group's split in 1987 –previously turned down an offer of £2.8 million by the event's organisers to join guitarist Johnny Marr, bassist Andy Rourke and drummer Mike Joyce on stage.
He is expected to be offered considerably more to appear at the event next year.
A source told Britain's The Sun newspaper: "The buzz around the people who used to work for the band is they could play Coachella for a ludicrous amount of money. It's closer than it ever has been.
"The split was a messy affair, but time's a healer."
Morrissey has previously been adamant a reunion was out of the question. He once said: "I'd rather eat my own testicles than reform The Smiths - and that's saying something coming from a vegetarian."
However, in October 2007, Marr - who is currently a member of British band The Cribs - hinted a reunion may be on the cards.
He said: "Maybe we will in 10 or 15 years' time when we all need to for whatever reasons, but right now Morrissey is doing his thing and I'm doing mine, so that's the answer really."
Joyce successfully sued Morrissey and Marr in 1996 over unpaid royalties.
The Smiths have remained a cult favourite with a massive following, despite never having a single reach higher than number 10 in the UK charts.