The news comes after Benny Andersson and Björn Ulvaeus, the male half of the Swedish group, hinted that the band may reform for a one-off concert to be beamed around the globe.
The four members of the band, which split in 1982 after a string of hits and sales of over 350 million records, had previously refused all offers to reunite.
However Andersson, speaking at an interview to celebrate his 84th birthday, said, "it's not a bad idea, actually. We've been in the studio recently, just for fun, and what's come out of it is a new album which reinvents our old tracks and brings them up to date for the ABBA of today. A concert to publicise the new album - yeah, why not?"
The album, entitled 'ABBA: Old', is due to be released on April 1st.
Among the reworked and updated tracks are a number of old favourites, brought up to date for the aging former supergroup.
Ulvaeus has rewritten their trademark 1974 Eurovision winner to talk about his recent prostate problems, and re-titled the song 'Waterworks'. Other songs on the album include 'Grandmamma Mia', 'Dancing Queen (Until Her Hip Gives Out)', 'Gimme Gimme Gimme (A Horlicks After 9pm)', and 'What's The Name of The (Zimmer) Frame'.
The group's former manager, Bjorn Everyminute, denied that the group's new album was an attempt to cash-in on their resurgent popularity, and said, "this is a whole new revitalised ABBA, back in the studio and ready to tour - as long as the concerts aren't too loud, end by nine and have several bathroom breaks for Benny's recent prolapse."