The classic song will appear on her second album, due out before Christmas, "The Gift".
Earlier this month Susan Boyle had been scheduled to appear on "America's Got Talent" where she planned to perform "Perfect Day". However, allegedly, Lou Reed said she could not use his song. Some reports said that Reed slammed Boyle's but he later denied these claims.
However following Simon Cowell wading into the argument on BBC 2 Radio referring to the situation as pathetic Lou Reed's people spoke out saying that they never refused her permission but they were simply caught up in red tape. At the time when Susan Boyle was meant to perform on "America's Got Talent" the song has not been clear for the American market. The decision was out of Lou Reed's hands.
Along with Lou Reed's classic Boyle has included Leonard Cohen's "Hallelujah" and "Don't Dream It's Over" by Crowded House.
The album is to be released on November 9.