Arquette, 39, was spotted at rehearsals for the ABC series and will reportedly be paired with Australian professional dancer Kym Johnson, the website said.
Johnson, 35, was crowned the winner of season 12 alongside her celeb partner, NFL star Hines Ward.
The actor is expected to join "Jersey Shore" party girl Nicole "Snooki" Polizzi, actress Queen Latifah, "White Collar" actress Tiffani Thiessen and reality star Rob Kardashian in the upcoming run of the dance competition.
The network will unveil the new "Dancing with the Stars" cast on Aug. 29 and the latest season will begin Sept. 19.
Arquette is attempting to get his career back on track following his split from actress Courteney Cox last October after 11 years of marriage.
In the aftermath of their breakup, the "Scream" star began flaunting his partying ways and bragged about his extramarital liaisons in media interviews.
He entered rehab in January and announced his commitment to sobriety once he finished his month-long treatment.