The 'Mr. Nice' actor is in discussions for a role in the next instalment in the British spy franchise - which will star Ralph Fiennes, Javier Bardem, Naomie Harris, Dame Judi Dench and Daniel Craig, who will reprise his role as 007 for a third time - which is being directed by Sam Mendes.
A source said: "Ifans will appear in the film, as well as Javier Bardem, who will play the main villain. Much of the filming will take place in South Africa."
The 43-year-old Welsh actor has previously starred alongside Daniel in 'Enduring Love', which saw him give the hunky actor an onscreen kiss.
Rhys previously said: "I spent the whole shoot winding up Dan Craig saying, 'Only four days to go now, Dan, darling, before our snogging scene.' Even now, after two Bonds, Dan still maintains that the hardest stunt he's ever done was getting to grips with my mouth."
'Bond 23' is set to be released in October 2012.