The 68-year-old comedian will be the highest-paid contestant, earning up to £250,000 to partake in this year's series of the jungle reality show, The Mirror reports.
"Freddie hasn't been in the spotlight for a little while, but ITV are convinced he's going to be absolutely brilliant," a source claimed.
"He has met so many different people and had so many amazing experiences. He'll have some great tales to tell."
Starr was infamously accused of eating a friend's hamster in 1986.
"That story is absolutely legendary. Producers just can't wait to test him out with some really gruesome meals," the insider said.
"If he can stomach some of the horrible creepy crawlies that they plan to serve up then he really will cement his reputation."
Dannii Minogue, her boyfriend Kris Smith, Kerry Katona, Alex Reid and Jedward are among those also linked to the 2011 lineup.
I'm a Celebrity... Get Me Out of Here will be "tougher" for contestants this year, according to the Daily Star
"Things are getting tougher this year. The bush buffet will turn even the strongest stomach, with the camel blood possibly the worst ever item dished up. It certainly won't be a picnic for them," a separate source alleged.
> Freddie Starr offers to do TV "for free"