Steely Dan is setting its sights on a new album, followed by a summer 2008 tour. Donald Fagen told Reuters that he's "back into songwriting mode" -- both solo material and with Steely Dan. Donald Fagen revealed that he is "talking with" co-founder Walter Becker "about a Steely Dan album."

Donald Fagen added, "We are planning to go out with Steely Dan in the summer (playing live) and maybe next fall (2008) I'm hoping to go out with my band ...We are having a lot of fun in our old age."

Donald Fagen recently released a boxed set of his three solo albums called Nightfly Trilogy. It includes the albums -- "The Nightfly," "Kamakiriad" and "Morph the Cat". The last Steely Dan album, "Everything Must Go" has been released in 2003.