By Ann Donahue Fri Feb 29, 9:43 PM ET

LOS ANGELES (Billboard) - To paraphrase "The Godfather: Part III" -- just when you think you're out on "American Idol," they pull you back in.

Season-two winner Ruben Studdard will perform the "farewell song" used to send off the losing contestants when they depart the top 12. This year, the song will be a cover of Kenny Loggins' "Celebrate Me Home."

It's a significant gig for Studdard, who was dropped by J Records at the end of 2007. He is, however, still managed by the show's 19 Entertainment and under contract to subsidiary 19 Recordings, a link that paved the way for him to return to the show as the song's performer.

"Ruben has never left our fold," "Idol" executive producer Nigel Lythgoe says. "(With) the success that we've had with the play-off song, I wanted to keep it in-house."

The "American Idol" season-five farewell song, Daniel Powter's "Bad Day," went on to sell 1.9 million copies, according to Nielsen SoundScan, and was the top digital download of 2006.

As part of the show's new sponsorship this season by iTunes, "Celebrate Me Home" will be made available digitally starting March 12, the day the first of the top 12 will be eliminated. In addition, it is expected to be included on one of the compilation albums annually released by "American Idol," according to 19 Entertainment U.S. head Iain Pirie.

"Celebrate Me Home" was selected after Lythgoe suggested the tune to Pirie and show creator Simon Fuller. "Each year we think about what's going to reflect that really special TV moment," Pirie says. "Musically and lyrically, it fits it perfectly."

Pirie says Studdard was chosen to record the track in part because of the warm reception he received for an appearance on last season's "American Idol" finale. Studdard is in negotiations to perform the song during "Idol Gives Back," the show's midseason charity effort.

Loggins' version of "Celebrate Me Home," originally released on an album of the same title in 1977, has sold 73,000 downloads, according to Nielsen SoundScan.

It's traditionally thought of as a Christmas tune, but the first line of the song -- "Home for the holidays" -- has been excised to make it less seasonal, Lythgoe says, while Studdard has given the track an updated feel.

Reuters/Billboard