The model and former Baywatch star has become a reality TV mainstay in recent years, appearing on Dancing with the Stars and four international editions of Big Brother.
[Pamela Anderson on 'Dancing with the Stars: All-Stars']
"Pammy will bring a bit of Hollywood glitz and glamour to the show, which we'll all need come the winter," a show insider told The Sun. "She's no stranger to dancing in front of viewers after her stints in America."
Anderson finished in sixth place on Dancing with the Stars' tenth cycle in spring 2010, and was recently eliminated first from its all-star edition, which is currently underway on ABC.
She also took part in an Argentinian reality ballroom dancing show called Bailando por un Sueño last year.
[Pamela Anderson on Big Brother]
Anderson recently made her fourth appearance on a Big Brother show with a brief stint on VIP Brother, Bulgaria's counterpart to Celebrity Big Brother.
She has also appeared on Big Brother Australia and India's Bigg Boss, and made a four-day guest appearance on Channel 5's first series of Big Brother in September 2011.
Dancing on Ice is due to return in January 2013 on ITV1.