Speaking to radio duo Fitzy & Wippa on Wednesday, the Hall Of Fame inductee revealed she thought her singing days were long gone.
"I had no intention of singing again. I thought I was done to be honest," Olivia said.
The 72-year-old went on to explain it was her recent song, Window in the Wall, with daughter Chloe Lattanzi that nudged her back into the spotlight.
"This song forced me out of retirement," the singer told the hosts. "When I heard it, it grabbed my heart. I thought, I have to record this song and I want to do it with Chloe."
When it comes to working with her mum, Chloe certainly shares Olivia's enthusiasm.
"When we get together, we make magic," the 35-year-old explained. "I always love singing with her."
Since teaming up for their new song, the mother-daughter duo have confessed that their once rocky relationship has finally healed.
“Chloe is an adult and our relationship has evolved. We have a wonderful time together,” Olivia told New Idea earlier in the month.
“One of the greatest gifts of the pandemic has been being able to spend time with Chloe because neither of us has been able to go anywhere or do anything!”
Olivia and Chloe currently reside in the US. And, despite the Grease star being a loud and proud Aussie, the singer told Fitzy & Wippa she has no intention of returning home any time soon.
The 72-year-old put her reluctance down to COVID and the risks of travelling given her weakened immune system.
Olivia was originally diagnosed with breast cancer back in 1992, then again in 2013, and later in 2017. The star has since bravely opened up about her battle with cancer and advocated for "kinder treatments" when it comes to the awful disease.
Despite making a home in the US with her husband John Easterling, Olivia admitted that she misses her home country.
Considering she's not quite ready to hang the mic up just yet, perhaps the showbiz icon can tour Down Under with Chloe once it's safe to do so.