The X Factor winner, who has allegedly been dropped by Simon Cowell's Syco record label, will compete in the ITV1 reality show when it returns in the summer.
A source told the Sunday Mirror: "Joe loves to sing - he's not bothered about what people will say. He will prosper from doing a show like this.
"He's incredibly talented and thinks appearing on the show could open up a whole new chapter. He's always loved the West End and thrill of performing live - it's when he's at his best."
The source added: "Considering the deal with Syco has just fizzled out, Joe's in a great place right now. He's investing his money wisely and making sure he has something to show for all of his hard work."
Others celebrities expected to appear on the show - hosted by Myleene Klass and Alan Titchmarsh - include A-ha singer Morten Harket. The show will air in a new timeslot on Sundays when it returns.