The 64-year-old singer impressed ITV1 bosses after becoming a highlight of last Monday's Diamond Jubilee Concert.
Jones's hula-hoop dancing performance has led to an offer of £250,000 to appear in the latest series, reports The Sun.
"We've wanted Grace for years as she is perfect for I'm A Celebrity," said a show source. "We all watched her incredible performance at the Jubilee gig and it reminded us just how brilliant she is.
"She'd power through those Bushtucker trials like nobody's business - or just throw a diva strop. The prospect of Ant and Dec getting to grips with her antics every night would be TV gold."
The upcoming 12th series of the celebrity reality show will air in November, with producers allegedly attempting to bring in some big names to compete with BBC One's Strictly Come Dancing.
"We've got the chequebook out and are in talks," the insider added. "Our only proviso would be that she has to bring that hula hoop into the jungle as her luxury item."
Watch Grace Jones's Diamond Jubilee Concert performance below: