The pair, both nominated in for Best Single at this year’s Brits, met in Los Angeles recently where they worked on the track.
Sheeran told Capital FM: “We’ve just done a song together so we were talking about shooting a video for that.”
‘The A Team’ singer, who has been nominated for three further Brit Awards, also announced he’s finishing off a new EP, the first set of new songs since his debut album ‘+’ topped the charts in September.
He added the EP would feature a duet with his “favourite artist” but didn’t say who it might be.
Speaking about his and Example’s Brit nominations, Sheeran said: “We texted each other about the nominations which was nice – he’s got ‘Best British Single’ nomination as well which is good.
“There’s not really much competition. It’s like one big British movement moving forward.”
Sheeran has also been nominated for Best British Album, Best British Breakthrough Act and Best British Male.