The Girls Aloud star recently won plaudits for her role as Princess Fiona in the West End musical adaptation of Shrek.
Now The Mirror reports that she is set to take part in the new series of the dancing contest.
A show source reportedly told the paper: "When we heard she was interested we were thrilled. Now everyone's dying to see her moves. She's a great name to have got."
Other rumoured contestants for the new series include Jerry Hall, Fern Britton and former England cricket captain Michael Vaughan.
Strictly producers are also reportedly keen on capitalising on the success of Team GB at the Olympic Games, with Rebecca Adlington, Victoria Pendleton, Steve Redgrave and Beth Tweddle all rumoured to be under consideration.
Walsh is to reunite with her Girls Aloud bandmates at the Royal Variety Performance later this year, to celebrate the 10th anniversary of their triumph on ITV reality show Popstars: The Rivals.
Watch Kimberley Walsh being interviewed at BBC Switch Live below: