The singer revealed the venture in a question-and-answer session on fan website True To You, and also claimed that he came close to recording a duet with David Bowie.
Morrissey’s memoir, called Autobiography and published by Penguin Classics, outsold the latest Bridget Jones novel to top the best-seller charts in its first week.
The book saw the famously private chart star disclose details of how his first relationship with a man came in his 30s and grumble at length about the injustices of a court case concerning the royalties from his former band.
The 457-page book also included his brushes with famous names including writer Alan Bennett.
He told fans that one reason he had turned to fiction was because “radio stations will not play my music” and “the majority of people have lost faith in the music industry”.
He said: “In 2013 I published my Autobiography and it has been more successful than any record I have ever released, so, yes, I am mid-way through my novel. I have my hopes.”
Talking about his potential duet with Bowie, he said: “When I made the record Ringleader Of The Tormentors, the producer (Tony Visconti), who is a very close friend of David Bowie, tried to get both Bowie and I together to do our version of You’ve Lost That Lovin’ Feelin’, with David doing the deep Bill Medley parts, and me doing the Bobby Hatfield shrieks. I loved this idea, but David wouldn’t budge.”
A spokesman for bookseller Waterstones said: “As with all things Morrissey, we will believe it when we see it. But if he is writing a novel, like Nick Cave before him he will find a ready audience for it. It will sell well and quickly.
“If it is very good, it will be read and talked about for a very long time - I imagine it is the latter Morrissey will be aiming for.”