Written and first recorded by Bama (US #86/MOR #42 1979).
Hit versions by The Carpenters (US #16/MOR #1 1981), Alabama (C&W #1 1986).
Also recorded by Mickey Gilley & Charly McClain (1984).
From the wiki: “‘Touch Me When We’re Dancing’ was written by Terry Skinner, J. L. Wallace and Ken Bell. Skinner and Wallace headed the Muscle Shoals, Alabama, session group Bama, who first recorded the song and released it as a single in 1979.