It is currently filming in California and Nevada and will head back to Thailand in June for final principal photography, reported Variety.
"This is a monumental moment for us," said producer Robert Hickman of Our House Films.
"We have already signed on 14 champions from the sporting world, mostly decorated fighters from the UFC, being able to add Mike Tyson as a cast member adds a whole new element and excitement to the film."
"Kickboxer: Vengeance" was directed by John Stockwell, and starred Alain Moussi, Jean-Claude Van Damme (who played Kurt Sloane in the original 'Kickboxer'), Dave Bautista, Gina Carano, Georges St-Pierre and Darren Shahlavi.
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Tyson, 49, will portray a tough convict forced into a world of fighting behind bars. He joins the previously announced Paige VanZant in the film.
Tyson has made cameos in movies and TV, including the shows "Law and Order: Special Victims Unit" and "How I Met Your Mother".
He memorably appeared in 2009's "The Hangover", demanding the return of his tiger, stolen by the film's protagonists.
In recent years, Tyson has also appeared in "Scary Movie 5", "Grudge Match" and "Ip Man 3".