The pair are reportedly recording the album in Los Angeles
The British singer-songwriter made the comments at the Silver Clef Awards in London on Friday (July 3).
Established in 1976, the awards raise funds for music therapy charity Nordoff Robbins, who work with people with a range of conditions including autism, dementia, depression and physical and learning disabilities. £8.5 million has been raised over the years to fund the organisation’s music therapy work.
Attending the event, Bugg told the BBC: “I’ve been working with Mike D from the Beastie Boys on my new album in LA. He’s a really cool guy.”
Quizzed on what it’s like to work with the hip-hop star, Bugg replied: “It is a good idea to bounce ideas off someone and get an opinion. If he says it’s cool it is cool. He’s been playing me unheard Beastie Boys mixtapes.”
Bugg recently revealed that his new material is “darker” than his previous work.
Speaking to NME in February, the guitarist said: “It’s different, there are some darker songs, I haven’t got a lot of fast ones this time but they might come later. The lyrical content’s not going to be the same because I haven’t experienced those things, I’d say it’s a little bit darker.”
Bugg hasn’t released any new music since his self-titled 2012 debut and last year’s ‘Shangri-La’, though he debuted two new songs during a show at Wolverhampton Civic Hall in October.
Beastie Boys have also confirmed that they will not play live again following the death of Adam ‘MCA’ Yauch in 2012.
The news came as the group’s other two members, Mike D and Adam ‘Ad-Rock’ Horovitz, filed a trademark application with the United States Patent and Trademark Office for the Beastie Boys name in conjunction with “live performances by a musical group”.
This led some fans to speculate that Mike D and Ad-Rock could be planning a live comeback. However, when reached for comment by Pitchfork, a representative for the group said: “There will never be Beastie Boys live performances without Adam Yauch.”
Horovitz previously confirmed that there would be no new Beastie Boys music since Yauch’s passing. However, the new statement is the first to effectively end any hopes of seeing the group in some form in the future.