Capturing the 17-year-old mid-dive, the figure is suspended four metres above the ground in a specially designed aquatic setting, allowing visitors to walk underneath Daley.
"I can't wait to see the figure and know the sculptors will have done an amazing job. I'm sure it'll be a strange feeling to see my 'twin' suspended in mid-dive," Daley said. "It really is an honour to be in Madame Tussauds London amongst so many sporting legends."
The diver is said to have been heavily involved in the creation, helping choose the pose and sitting in with sculptors. He also donated the blue Adidas trunks the figure wears.
"Because of the unique nature of the pose, the figure was one of the most complex ever created by our Studios team," Madame Tussauds said. "The figure shows more flesh than any other in the attraction and the muscle definition of an athlete descending in a perfect dive had to be spot on.
"The facial expression also needed to portray Daley accurately, upside down and totally focused in the moment of the dive. The inverted positioning also created special challenges for the hair and colouring team and a special spinning support mechanism was created to allow the team to rotate the figure during the final stages of completion."
Placed in the Sports Zone, Daley's figure features alongside those of David Beckham, Lewis Hamilton and Muhammad Ali. A second 2012 hopeful's waxwork will be unveiled closer to the games.
> Watch Tom Daley's 'Sexy And I Know It' video spoof
> Tom Daley Picture Special
Watch a video showing the making of Tom Daley's waxwork below: