The song appears on Eno's upcoming LP The Ship along with recently revealed cut "The Ship".  

Eno explains his choice of cover:

“The first time I ever heard [The Velvet Underground] was on a John Peel radio show… it was when their first album came out and I thought 'This I like! This I want to know about!'. I was having a huge crisis at the time. Am I going to be a painter or am I somehow going to get into music. And I couldn’t play anything so music was the less obvious choice. Then, when I heard The Velvet Underground I thought, 'you can do both actually'. It was a big moment for me. 

“That particular song always resonated with me but it took about 25 years before I thought about the lyrics. “I’m set free, to find a new illusion”. Wow. That’s saying we don’t go from an illusion to reality (the western idea of 'Finding The Truth') but rather we go from one workable solution to another more workable solution.

"Subsequently I think we aren’t able and actually don’t particularly care about the truth, whatever that might be. What we care about is having intellectual tools and inventions that work. [Yuval Noah Harari in his book Sapiens] discusses that what makes large-scale human societies capable of cohering and co-operating is the stories they share together. Democracy is a story, religion is a story, money is a story. This chimed well with “I’m set free to find a new illusion”. It seems to me what we don’t need now is people that come out waving their hands and claiming they know the Right Way.”

The Ship will be accompanied by a series of installations where listeners will be able to hear an "alternative telling of The Ship in multi-channel 3-dimensional sound installations,"

The Ship is out via Warp on 29 April.

Stream Eno's take on "Fickle Sun (iii) I'm Set Free" below.