Pendleton, who won gold in the Women's Keirin last week, is among the Olympic stars that the broadcaster wants to sign up to boost this year's ratings.
Gymnast Beth Tweddle and swimmer Rebecca Adlington are also on the BBC's wishlist, according to The Mirror.
Pendleton is in line to win another medal later this week and also famously struck gold four years ago in Beijing. She has also confirmed that she will definitely be retiring from cycling at the end of the Games.
Strictly returns to BBC One in the autumn.
Radio 2's Chris Evans, cricketer Michael Vaughan, soap star Charlie Brooks and Westlife's Nicky Byrne are all rumoured to be taking part in the show's 10th series.
[Strictly 2012 - Rumoured Celebrities]
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