The producer - who has paired up with the likes of Louis Tomlinson, Linkin Park and Fall Out Boy in the past - shared photos of himself with the 19-year-old actress-and-singer on Twitter, and suggested a collaboration between them on an upcoming record.
Writing alongside one of the snaps on social media, Steve said: ''Back in the #dimmakstudio w/ @bellathorne working on a [hot] new record.''
And he tweeted with another photo: ''I love when @bellathorne cuddles up to me #dimmakstudio''
Bella - who is famous for her roles in the films 'Perfect High' and 'Big Sky' and TV shows 'Shake It Up' and 'Famous In Love' - has released a handful of singles but is yet to make a huge impact on the music charts.
In 2012, she released her debut album 'Made in Japan', and followed it up two years later with 'Jersey', with the single 'Call It Whatever' breaking into the Top 10 of the US Dance charts.
Steve had a worldwide smash hit with 'Just Hold On' with One Direction star Louis Tomlinson, his first single since One Direction went on hiatus.
Steve has previously revealed he prefers working with pop musicians rather than artists who are already in the EDM genre because they can offer something different to his usual skills set.
He said: ''I did a song with Charli XCX, she's always in LA, she's a great girl. I prefer working with people not in the EDM world - it's more challenging. I've started a lot with pop acts, why not?''
What's new in the music world this week?
'Sounds of Silence' was released on this day (January 17th) in 1966.
Listen to Alex Bayly performing 'Animal'.
Two weeks ahead of Independent Venue Week, Dry Cleaning made 'Britain's Best Small Venue 2015' (NME) the second port of call on their 2020 tour.
'Leave Home' was released on this day (January 10th) in 1977.
For their last gig of the year, The Libertines came back to their adopted hometown of Margate to finish off their latest tour.
Celebrating the birthday of David Bowie with his most legendary songs.