The duet was recorded with Gaga last year, and it's thought that 'Red Flame' will feature on Gaga's upcoming album, ARTPOP.
Speaking about the track to Brazilian website Plantão Mix, Banks said, "I worked with Lady Gaga from afar.
"We worked via email and the internet, we have a song called 'Red Flame' and we also have a song called 'Ratchet' that... I don't know what she's doing with it, she's going to release it when she wants to release it and - yeah, I'm really excited about it."
Banks recently pushed back the release date of new single 'Yung Rapunxel' to March. The track was set to be the first release from debut album Broke With Expensive Taste, and Banks wrote on Twitter that it would be available on 12 February.
However, in a Ustream chat with her fans yesterday, Banks said that it would now drop "in March."
The New Yorker signed to Interscope Records in the US and Polydor in the UK in 2012 and has only released EPs, 212 and 1991 as well as her Fantasea mixtape so far.
She wrote on Twitter today (13 February), "IM ITCHING TO RELEASE NEW MUSIC !! *kicks wall in fit of rage* l."
Lady Gaga ARTPOP: 'Red Flame' and more, everything we know about her new album