The singer is getting his skates on just days before the new series of the ITV1 show hits screens, after one-hit wonder Chesney sprained his ankle and fractured a bone in his leg during rehearsal.
Chico, who has been in training as a stand-in, said: "I'm delighted that I'm in but very, very disappointed for Chesney. Hopefully I can fill those boots of his, because he was looking fantastic on the ice."
The former stripper - who reached the quarter-finals of the 2005 series of The X Factor - added: "I've been given the opportunity of a lifetime and I'm going to grab it with both hands.
"I haven't done any (skating) for the last two-and-a-half weeks. I'm really a little bit apprehensive, because it's kind of like, 'Oh my God, it's here'. I didn't think I was going to be in.
"I've got to go out with another partner, we've got to get used to the new routine and perform it as soon as possible. So no pressure ..."
The singer, who has so far managed to avoid injury on the ice, said he hoped to stay in the show long enough to skate along to his 2006 chart topper, It's Chico Time.
And Chico - whose other songs include Curvy Cola Bottle Body Baby and D.I.S.C.O. - also revealed his methods for keeping positive during the contest, which returns to ITV1 on Sunday night.
"I'm a spiritual person so I meditate, I think of my spiritual master. I've got prayer beads and things, so I do that to ward off any kind of negativity," he said.
SLIDESHOW: See the rest of this year's Dancing On Ice contestants...