The actor, best known as Walford hardman Phil Mitchell, will appear in Aladdin at The Orchard Theatre in Dartford later this year, News Shopper reports.
McFadden is taking on the villainous role of Abanazar in the production, which will run between December 8, 2012 and January 6, 2013.
Speaking of the project, McFadden commented: "I am delighted to be playing the part of Abanazar in Dartford this year. Playing the pantomime bad guy is such great fun, and there are lots of opportunities to interact with the audience during the show.
"The Orchard in Dartford has a great reputation - I'm really looking forward to playing there this Christmas."
Jonathan Kiley, executive producer for Qdos Entertainment, added: "As a former British Soap Awards 'Villain of the Year', Steve is certainly well qualified to lead the cast as the pantomime bad guy.
"With 3D sequences, this production has all of the elements of traditional family pantomime that Dartford audiences have come to expect, but also has the added element of an array of outstanding and unmissable visual effects."
McFadden appeared as Captain Hook in a Peter Pan pantomime last Christmas. His EastEnders absence was explained as Phil spent time in jail in the climax to his stalker storyline.
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