The Love Island 2017 Islander is said to be the highest paid on the cast of the new series.
Alongside Olivia, taking part are Made In Chelsea's Alik Alfus, TOWIE star and blogger Vas J Morgan, Diversity dancer Sam Craske, Sugababes star Mutya Buena, TOWIE's Chloe Sims and Olivia's fellow Love Island star Eyal Booker.
Olivia made the final of last year's ITV2 series with then boyfriend Chris Hughes, but the pair split soon after the show. Eyal was a contestant on this year's series but eliminated half-way through the run.
A source told The Sun newspaper: "It's a win win situation for Olivia. She's getting paid big money to find love."
"Producers are delighted she's signed up as they thought she was brilliant on Love Island and she's really impressed them with her TV appearances since."
In Celebs Go Dating, famous (sort of) names are set up on dates with members of the public.
An insider claimed Olivia would be "brilliant" on the series, which will begin on TV later this year.
"Olivia will be brilliant on the show – she’s great value and genuinely looking for a new man," they said.
Alongside the names already confirmed, Gogglebox star Amy Tapper is said to have quit the show in order to sign up for Celebs Go Dating.
18-year-old Amy is currently a regular in the Channel 4 series alongside her parents Nikki and Jonathan and brother Josh.
Meanwhile, there will be some changes at the dating agency for the next season after Eden Blackman left the show. He leaves Nadia Essex, alongside receptionist Tom Read Wilson.
Joining them for season 5 will be new matchmaker Paul Carrick Branson.
Celebs Go Dating airs on E4.