The 53-year-old singer finished her contract with Warner Music Group - who she had been signed to since the start of her career in 1982 - with her third greatest hits album, 'Celebration', in 2007 and inked the new deal, thought to be worth $1 million an album, with the label, owned by Universal Music Group.
A source told the New York Post newspaper: 'It's just about keeping relevance so that she can tour. She is still in the demo phase, but the idea is to get the first album out early next year.'
While she will release her records through Interscope, Madonna will continue to tour under her agreement with Live Nation Entertainment.
Madonna has also been confirmed to perform at the NFL Super Bowl Half Time Show in the US next February, which is when she is expected to make her comeback.