The former Two and a Half Men star is flying into the UK in the next two weeks ahead of the show's debut on Channel 5 later this month, according to the Daily Star.
"It would be unbelievable, a producer's dream," a production source told the paper.
"No-one would want to miss the chance of seeing what [Sheen is] up to and hear the wacky things he's saying. And let's face it, he's been saying some crazy stuff recently."
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Sheen is one of several stars who have been linked with Celebrity Big Brother, which is believed to be beginning in mid-August.
Jedward, Kerry Katona, former Liberal Democrat MP Lembit Opik, Snoop Dogg, BBC Radio 1's Tim Westwood, former Visage frontman Steve Strange and Sarah, Duchess of York have also been rumoured as contestants.
A Channel 5 spokesperson said: "Big Brother execs are in talks with a number of celebrities about appearing on the series, but we're not confirming any names at the moment."
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Watch the latest Big Brother trailer - featuring past housemates - below: