Minogue began her “More Than Just a Residency” shows in November, in support of her 16th studio album Tension, with shows running on select weekends until May.
Minogue’s diary is said to be “jam-packed” in the coming months, but she is thought to be considering the residency for life offer.
The source added: “She has a repackage of her album Tension coming out, which will include a string of new songs, as well as her headline gig at BST Hyde Park in July.
“Kylie also wants to go on a full arena tour at some point, so being locked in Vegas wouldn’t be an option,” they added. “Michael knows this and has put the offer of the lifetime residency on the table so she can mull it over.”
Just days before her Vegas residency began in November, the Australian star admitted it had come at a “good time”.
Speaking to Music Week, she said: “Vegas seemed to be more for the twilight of one’s career, but in the interim it has had this rejuvenation.” Adding: “That is not taking away from what that was, because it has worked so well for people historically.
“But it’s true that it’s pretty happening right now, so I thought it was a good time. We would joke that I was definitely going to end up in Vegas. Many years ago - on the ‘Showgirl’ tour in 2005 - we were saying, ‘This should be in Vegas.’ And then ‘Aphrodite’ in 2011 should absolutely have been in Vegas.
“It would’ve made way more sense to be there as opposed to packing up precision water fountains in a truck and schlepping them to the next location.”