The Nine Lives of Chloe King actress will play a 16-year-old with connections to Jeremy (Steven R. McQueen) and Elena (Nina Dobrev) on the show's fourth season, according to Entertainment Weekly.
Described as "a natural beauty with a bit of an edge", Phipps's character will make her debut on the second episode of the upcoming season.
Vampire Diaries exec Julie Plec recently revealed that Damon (Ian Somerhalder) will be feeling alone in the new episodes.
The producer previously told fans to expect "surprises, tragedies, new villains, break-ups, make-ups, romance and scandal".
The Vampire Diaries is slated to return on October 11 at 8pm on The CW.
Watch a trailer for season four of The Vampire Diaries below: