Strange, real name Steven John Harrington, found fame in '80s group Visage and has been linked to Celebrity Big Brother in previous years.
Strange is taking the offer seriously this year and has had advanced talks with producers, according to the Daily Star.
He achieved notoriety in the '90s for his drink and drug addictions and was famously arrested in 2000 for stealing a £10.99 Teletubby doll in Bridgend.
He has also previously appeared on BBC reality series Celebrity Scissorhands.
X Factor twins Jedward, Kerry Katona and Rachel Stevens have all been linked to this year's Celebrity Big Brother.
The Endemol reality show is expected to return in the week commencing August 15.
Watch Steve Strange on Celebrity Scissorhands below: