Here’s an update from the Official Site:

From 5 July through to 18 September, Steps are doing eight weeks of recording. Going back to PWL to do some more tracks by people who have done tracks on the first two albums. There’s definitely going to be things on the third album that people are familiar with. But they are going to be going to Sweden to work with the producers who have done Britney, Nsync, Backstreet Boys, obviously they are all on the same record label. They’re going to be definitely recording some tracks for the new album with all those Swedish producers.

They’ll be going off to America to work with the guys called Riprock ‘n’ Alex. They’re the guys who did half of Nsync’s album so that will be quite funky. They’ll be working with a team called Metro which is Brian Rowlings and Mark Taylor who have done “Believe” for Cher and Enrique Eglesias. H has written a song with them that they’ll be recording and there’s going to be recording in Los Angeles in August. Most of July is in London and Sweden then August is going to be all in America. These Riprock ‘n’ Alex guys are in New York, Steps will also be going over to Los Angeles and San Francisco. We’ve also been offered a Dianne Warren song as well.

Obviously there’s “Summer Of Love” for the third album. There’s going to be another single in October, but we don’t know what that’s going to be yet as we’re yet to record it. And the album is out some time during November which will be in time for the next tour. The tour is going to be a Christmas tour with Christmas songs, it’s going to have all of the hits and songs off of the third album. Some of the important things are songs the band have been writing for themselves. Faye flew out on the 5th of July to work with Cyndi Lauper, which is very exciting. And the band’s solo tracks – we don’t know what they are going to be yet because they’ve all been working with lots of different people.

So we’re not just going to be working with the Topham and Twigg team as with the first two albums. But people mustn’t think we are just going to abandon the STEPS sound because we’re not as we’ll be doing a lot of the tracks with them, but it’s going to be moving on. And although we’re working with the Swedish people its not going to sound just like Britney it will still be with the pure pop STEPS sound but it’s got more sounds on it, a bit more international sounding. It’s going to be really good! (Source: Official Site)