The actor, who films his last scenes as Anthony Moon in the coming weeks, is said to have been targeted by the show's producers and impressed during audition stages.
According to the Daily Star, the 22-year-old will confirm his involvement once his contract has been finalised.
Jodie Marsh is also said to be joining the lineup for the eighth series of the ITV show, after she was spotted undergoing a skating trial at Alexandra Palace ice rink in North London.
An insider told the paper that the former glamour model has been approached as ITV1 bosses are keen to build hype and want to bring a bit of drama to the forthcoming series.
"The show was slammed as being boring last time around so bosses are keen to pick people who will make the headlines," said the source.
"In Jodie's case it doesn't have to be for the right reasons. She loves the limelight and they reckon she'd be great on the show."
The insider added: "They also want Matt. They approached him after he said he wanted to do Strictly Come Dancing so he really is top of their list.
"He's young, good-looking and has that cheeky personality that female viewers love."
The source also revealed that Steps star Ian 'H' Watkins has auditioned for the show and hinted that the 'ice panel' may undergo a few changes.
"There is going to be a major shake-up of the judges and they want contestants who will appeal to all ages," they said.
"The crazier and louder the better is what they're thinking."
Watch Jodie Marsh talk to Digital Spy about her move from glamour modelling to bodybuilding below: