The actor, 58, has reportedly been offered a £500,000 deal to join the British show just months after he was fired from the American version of the show.
Hasselhoff is said to be 'really looking forward' to the auditions, which will begin in the New Year.
A source said to UK newspaper The Sun: 'David was delighted to receive the call as he really enjoyed his time on America's Got Talent. He is popular in the UK and loves the country, so for him it is a dream opportunity.
'You might say it's ironic Simon asked David to replace him after he was dropped in America. But they are great pals and David is really looking forward to the auditions.'
However a source on the show added: 'We are talking to David Hasselhoff. Nothing has been finalised.'
Haselhoff will join Amanda Holden on the panel as well as one other judge that is yet to be announced.
The new judges come after Simon Cowell and Piers Morgan quit the show earlier this year.