In August 2004, it was announced that Minogue would be recording new tracks, rumored to be some kind of Christmas material. The month after, it was announced that the artist would be releasing a greatest hits album, titled "Ultimate Kylie", containing two new tracks, being "I Believe in You" and "Giving You Up"; Jake Shears and Babydaddy were in charge of the production of the former, whilst the latter was produced by Brian Higgins and Xenomania. A separate compilation DVD with the same name, containing several music videos by the singer, was also released to coincide with the distribution of the album. In the same statement, it was announced that "I Believe in You" would be the lead single from the compilation.