The Mumford and Sons frontman has penned new words to unfinished tracks written by the legendary folk singer in the late sixties during his 'The Basement Tapes' period, for a new album entitled 'Lost On The River: The New Basement Tapes'.
Producer T Bone Burnett, who also worked with Elvis Costello, 59, for the project, told the LA Times newspaper: "These are not B-level Dylan lyrics. They're lyrics he just never got around to finishing."
Dylan's 1975 album 'The Basement Tapes' was mostly recorded in the basement of the The Band's Big Pink House - a home the Canadian-American rock group shared in New York - after they toured with the singer in 1966, however this time the material is being recorded at Hollywood's Capitol Studios.
T Bone added: "This is the exact opposite of 'The Basement Tapes'. We're in the best recording studio in the world, and we're not in a basement."
The producer has already recorded almost 50 tracks for the project which also includes Carolina Chocolate Drops singer Rhiannon Giddens and Dawes guitarist Taylor Goldsmith.
The whole process will be documented in a film directed by Sam Jones which will be aired on American television network Showtime.