 Villeneuve would be the fifth world champion on the 2010 grid
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New team Stefan Grand Prix will be on the grid at the first race of the season despite not yet having an entry, according to BBC pundit Eddie Jordan.
The team has been set up by Serbian businessman Zoran Stefanovich and has been lobbying hard for a slot on the grid in place of struggling US F1.
Jordan said: "My understanding is that they will be in Bahrain with ex-champion Jacques Villeneuve driving."
He said Villeneuve was due to have a seat fitting at Stefan's German base.
The Canadian won the world championship in 1997 with Williams but has not raced in F1 since 2006.
The second seat would be occupied by a pay driver, Jordan said.
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Don't be surprised if the backer of US F1 - YouTube founder Chad Hurley - joins up with Stefanovich
Eddie Jordan
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They will use the car that was designed by the Toyota team last year before the Japanese manufacturer quit the sport at the end of last season and the car will be fitted with Toyota's engine rather than the Cosworth that is being used by the other new teams.
Jordan said they would be given the slot vacated by US F1, who have failed to produce a car on time to make the season.
US F1 have already asked to miss the first four races and are now reported to be asking to defer their entry until 2011.
"Don't be surprised if the backer of US F1 - YouTube founder Chad Hurley - joins up with Stefanovich," Jordan said.
Stefan GP have released a number of statements via their website saying they should be given a slot on the 2010 grid.
Although their latest release, on Sunday, was notably more conciliatory in tone towards both governing body the FIA and F1 boss Bernie Ecclestone's Formula 1 Management (FOM) company.
"SGP would like to re-confirm its desire and, importantly, its ability to compete in the whole of the FIA 2010 Formula 1 World Championship," it said.
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"It recognises that this can only happen with the consent of the FIA and the FOM, but has faith that the Formula 1 'family' will make the correct decision in the end.
"There will be no more press releases on this subject and we look forward to being allowed to show everyone our team in Bahrain."
If Stefan do race this year, Villeneuve would become the fifth world champion on the 2010 grid, alongside Mercedes' Michael Schumacher, Ferrari's Fernando Alonso and McLaren drivers Lewis Hamilton and Jenson Button.
Jordan correctly predicted last year that Schumacher would return for Mercedes long before the deal became public.
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