Tomlinson, 24, has set up his own record label imprint under Sony and the pair are working with a new girl group, which Cowell says are "as good as I have ever heard," reported Female First.
"He has just signed a deal with us as an imprint of a record label. He has a new artist who is going to be released this year I hope who are incredible," Cowell, 56, said.
"He has got fantastic instincts. He told me about this idea I would say a year or 18 months ago. He stuck with it. They are unbelievably good. They are as good as I have ever heard. I think he has got a real knack for this.