Degg is being tipped to "mix things up in the house", according to the Daily Star. She has apparently been billed as "beauty and brains" by producers.
The former Page 3 girl has TV experience, appearing on and winning a Page 3 Weakest Link special and in 2004 triumphing on Celebrity 24 Hour Quiz.
Other celebs among the early housemate rumours include ex-News of the World journalist Paul McMullen, Swedish footballer Freddie Ljungberg, Bachelor star Carianne Barrow and controversial journalist and TV producer Samantha Brick.
Celebrity Big Brother returns in August for an extra series this year, following the ratings success of the Denise Welch and Frankie Cocozza outing in January.
Channel 5 also announced last week that they have reached a deal with producers Endemol to produce two more years of Celebrity and non-Celebrity Big Brother.
> Freddie Ljungberg for Celebrity Big Brother
> Celebrity Big Brother extra series ordered by Channel 5 for 2012