The 72-year-old singer had a hit single with her cover of the late music legend's I Feel For You in 1984 and in 1998 the pair worked together on a full album called Come 2 My House.
Speaking to The Guardian, Khan said: "We worked on a lot of songs, and they're all going to be on a CD I'm soon to release - there's a lot of red tape that's been in the way, but we've cleared it. It's him and me and (bassist) Larry Graham, together."
When asked what it was like to work with Prince, she said: "It was like working with myself, more than anyone else I've worked with. Sia's bringing up a close third, behind Prince and Miles Davis. Quincy Jones, too: he oozed inspiration and shared it. Prince just grabbed ideas out of the air and left you wondering: 'Where did you get that?' He was a really deep and beautiful thinker."
During her career, Khan has also worked with Whitney Houston, Joni Mitchell, Sia, Stevie Wonder and jazz trumpeter Miles Davis.
When speaking about Davis, Khan said: "He and Prince were very similar - big thinkers. Miles was always looking to grow. Prince was, too. The three of us collaborated on Sticky Wicked, on my CK album in 1988, and it was a beautiful combination."
Back in 1995, Khan performed with Prince at his Wembley Arena after show party in London at 4am along with jazz star George Benson. The singer went on to share that her memory of the night is not too good. Â
"My memory is at least as hazy as yours, I bet - probably more. Four o'clock in the morning? No one's doing anything but craziness at four in the morning! So I'm sure it was like a wild, wonderful night. And don't look for the little details; just remember the big feeling you had."
Khan begins her Australian tour in Melbourne on April 18.
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