The multi-album deal will see Stewart team up with Grammy award-winning producer, songwriter and Verve Music Group chairman David Foster to record his first Christmas album.
Stewart will team up with Grammy award-winning producer, songwriter and Verve Music Group chairman David Foster for the album, which will be his first festive LP.
It will feature a handful of big name vocal duets and will be released this autumn via Verve Music Group.
"I've known Rod and Arnold for many years and have been wanting to work with them for some time," said UMG CEO Lucian Grainge.
"Rod possesses one of pop music's most inventive and memorable voices; and we're delighted to be part of the next great chapter in his already storied career."
"UMG remains committed to artistic creativity and expanding opportunities for artists in the marketplace," he added, "and nowhere is this more evident than in our new partnership with an artist of Rod's caliber."
Rod Stewart said, "I'm confident that by partnering with my fellow CBE, Lucian, and his cracking, top-notch company, we have the best team in the business. And the chance to work again with David Foster makes it that much sweeter."
Arnold Stiefel added: "This is a match made in heaven. Rod's writing spirit has been rekindled and Universal is the perfect keeper of the flame."
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