Elton has praised "Britain's best lyricist" for taking the "amazing step" of writing a musical.
Lily Allen is writing 12 songs for the score for a musical based on Bridget Jones's Diary.
The 26-year-old, who recently talked about "retiring" from music, is working with author Helen Fielding to bring a show to London's West End in 2012.
The singer is also working with Elton's new Rocket record company.
The older performer said. ''I think this week is the final kind of workshop for The Bridget Jones Diary project before they go into rehearsals.''
He also told Music Week:
''Thats an incredibly exciting thing for her, an amazing step for an artist to write a full musical, especially one so young, but I think Lily is Britains best lyricist and shes taken this mantle on which is not easy when youre young.
There's more about Elton's views on the music industry, as well as his own plans to work on another album at