Michael, 39, is said to be considering the Athens Olympic Committee's request.
The singer, who was born in north London, has Greek roots. His original name is Georgios Kyriacos Panayiotou.
"A request was made by the Athens Olympic Committee to write the theme song for the 2004 games," Michael's spokeswoman said.
Michael, a former member of the 1980's duo Wham!, recently came under fire for the lyrics and video of his upcoming single Shoot the Dog.
The song attacks British Prime Minister Tony Blair's close relationship with US President George W Bush.
Shoot the Dog's video features an animated scene showing Michael in bed with Cherie Blair.
Police case
Another of Michael's videos, made after he was arrested for lewd behaviour in a public toilet in Los Angeles in 1998, also attracted controversy.
A police officer who arrested the singer during the incident attempted to sue over the video for Outside, claiming he was depicted in it kissing another man.
The case was later dismissed.
The Athens Olympics, to be held in August 2004, has attracted controversy of its own, after its organising committee was accused of falling dangerously behind schedule.