The rapper - cousin of former 'X Factor' judge Tulisa - is currently being chased for an undisclosed amount, and it is thought he will use his reported £100,000 appearance fee to pay off his unpaid tax bill.
A source told The Sun: “Dappy has been given a stark warning to pay off his tax bill but he needs cash fast. 'Celebrity Big Brother' has come knocking and it’s been tough to say no.”
Dappy - real name Costadinos Contostavlos - had previously said the show was a "disgrace" and taking part would signal the end of his career.
He told The Mirror last year: "No way would I go on one of them, they’re the kiss of death. You go on 'I’m A Celeb' or 'Celebrity Big Brother' when your career is fading away. It’s a disgrace!"
Prepare to eat those words, Dappy!
Controversial 'This Morning' star Katie Hopkins, former 'Strictly' contestant Nancy Dell'olio and TV host Jim Davidson have all been linked to the latest series of the Channel 5 reality show.
Katie Price recently denied rumours that she would also be walking into the famous house, tweeting: "I am not doing big brother as people keep saying."
'Celebrity Big Brother' begins on 3 January at 9pm on Channel 5.