Heard a rumour that Dani Woodward, who had retired about a year or so ago, will be back in action soon. Can anybody confirm this?

Oh my, I hope this is more than a rumor.  Dani is someone I always wanted to see, but I missed my chance.

performing or providing?

Both.
Apparently she retired to spend more time on a relationship, I believe. One would assume (hope???) that if she's going to be back performing then she'd also be providing again.
And yeah she's on my short list too. In fact, she IS the short list.
I'll be keeping my fingers crossed.

Not necessarily. She's in a relationship (with a girl) so its probably G/G.  And its lots easier to justify performing with actors then seeing strangers.  Otherwise, why even do performing when she could make more money providing anyway.  I hope she does provide, but lets not get ahead of ourselves.