According to Heat Vision, the actor is to portray an "alcoholic warrior monk" in the comic book-inspired sequel.
Elba joins Nicolas Cage and Ciaran Hinds in the movie, which is helmed by Crank duo Mark Neveldine and Brian Taylor. Principal photography for the film commenced last month. It will be shot in 3D in Romania.
Elba - who will also star in Kenneth Branagh's Thor - has previously expressed interest in playing other Marvel heroes, including Blade and Luke Cage.
"I wouldn't mind having a crack at bringing Blade back, personally," he told Total Film. "There's a couple of things there that they have... Luke Cage is... very interesting."
Ghost Rider: Spirit Of Vengeance arrives in theatres in February 2012.