Here is this great piece of news from Billboard :
Michael McDonald and Steely Dan may be reuniting. Sources tell Billboard that McDonald, who played keyboards and sang backing vocals on such Steely Dan classics as "The Royal Scam," "Katy Lied" and "Aja," is in talks to co-headline the band's summer tour.

Each act would play its own set, and then McDonald would join Steely Dan for a number of hits on which he performed, including the 1977 No. 11 Billboard pop singles chart entry "Peg."

McDonald has scattered solo dates on the books through June 10 in Nashville. Meanwhile, Steely Dan principals Donald Fagen and Walter Becker are busy with their own solo projects: Fagen's third solo album, "Morph the Cat," arrives Tuesday (March 7) via Reprise, while Becker is at work on the follow-up to his 1994 solo debut, "11 Tracks of Whack."