She will join fellow British actor Kingsley Ben-Adir, who is set to portray the singer. Ben-Adir is known for his roles in The OA, High Fidelity and Peaky Blinders.
King Richard director Reinaldo Marcus Green is also reported to be involved with the project.
According to Deadline, Rita and the Marley family have given their blessing to the casting decision.
Marley died of cancer in 1981 aged 36. He is well known for hits including Get Up, Stand Up, One Love, No Woman, No Cry, and Redemption Song.
The untiled project is due to be released in 2024.
Since her appearance as Nomi, a 007 agent, in No Time to Die, Lynch has starred in the drama Ear for Eye (2021) and as Captain Marvel in Doctor Strange in the Multiverse of Madness (2022). This year, she will also play Miss Honey in a remake of Roald Dahl classic Matilda and star in The Woman King opposite Viola Davis and John Boyega.
On becoming the first female 007 in a Bond film, Lynch told The Guardian: “I think they were just looking for someone who would be able to be a match for Bond.
“Who would be able to stand up and be vocal and forthright and strong and able to handle a weapon, able to handle herself and not someone who takes any crap from anybody at all. Then, as it unfolded, she became this quite complicated, free, open-minded vocal human being who brings a really nice twist to MI6.”
— Additional reporting from PA