The former Girls Aloud star, who was previously a judge on the ITV talent show from 2008 to 2010, said that she was excited about her comeback.
''I'm very happy and excited to be returning to the X Factor. I'm inspired and ready to find new talent and potential pop stars. It's going to be a fun series," she said.
Her announcement came minutes after she shared an image of herself with her hands around Simon Cowell's neck on her Instagram page.
"GUESS WHAT!!.. I'm baaaacccckkkkk!!!! #iMayActuallyRingHisNeck #XFactor2014 #leggooo (sic)," she captioned the snap.
Cowell paid the 30-year-old songstress back by writing on Twitter: "It's official. Cheryl is back. Be careful what you wish for!"
The pair have kissed and made up following their infamous fallout in the wake of Cole's unceremonious axing from the X factor USA after just three weeks.
According to the Sun, the Fight For This Love hitmaker was persuaded to return to the UK version of the show after bosses offered her £1.5m.
Sources close to the star insists the money only helped sweeten the deal.
"This is nothing to do with the money. She loves the show and has unfinished business," an insider said.
The X Factor returns for the 11th series this summer.