The Brit comic, who has just turned 50, showed off a still from the new series that also stars Johnny Depp and pint-sized actor Warwick Davis.
Holding up the picture Letterman asked, 'What is going on here and where is Amnesty International?'
Gervais said, 'Well let me explain… that's me and Johnny Depp shoving a dwarf down the toilet.
'It also sounds like a euphemism, 'I'm off to shove a dwarf down a toilet.''
Letterman replied, 'You can't shove a dwarf down a toilet.'
'You can if they are small enough!' said Gervais.
Gervais then explained the new show which will feature actor Davis – who has dwarfism – playing the ego-maniac head of a talent agency for other little people.
'It's a fake documentary about Warwick Davis who is a real actor,' Gervais said.
'He's three-foot-six and was a Ewok in Star Wars and he was also in Harry Potter and Willow.
'It follows his life and his career is on the slide.'
Letterman joked, 'For a long time he was a very successful stand-in for Tom Cruise.'
The series will be shown on BBC Two in the UK and HBO in the US.