Amazon did not release details on the next actor to play James Bond in the announcement.
Villeneuve acknowledged the “massive responsibility” of helming the new film and expressed his excitement at the challenge.
“I grew up watching James Bond films with my father, ever since Dr No with Sean Connery. I’m a die-hard Bond fan. To me, he’s sacred territory,” he said.
“I intend to honour the tradition and open the path for many new missions to come.”
He added that he and fellow producers Amy Pascal and David Heyman are “thrilled to bring him [Bond] back to the screen”.
Head of Amazon MGM Studios Mike Hopkins hailed Villeneuve as a “cinematic master” and praised his ability to deliver “immersive storytelling” for global audiences.
“James Bond is in the hands of one of today’s greatest filmmakers and we cannot wait to get started on 007’s next adventure,” he said.
Pascal and Heyman added it was always Villeneuve’s dream to make a Bond film and “we are lucky to be in the hands of this extraordinary filmmaker”.
It’s still unclear when the next Bond film will be released as the search for the next actor to play the titular spy continues.
British actors Aaron Taylor-Johnson and James Norton have been rumoured as frontrunners, while Irish actor Paul Mescal’s name has also been thrown into the mix.
Villeneuve gained prominence with a series of critical successes including Sicario, Prisoners and Incendies.
His 2016 science fiction thriller Arrival earned him his first Oscar nomination for directing.
Most recently, blockbusters Dune and Dune: Part Two grossed a combined total of more than $1bn (拢730m) worldwide, with both films nominated for Best Picture Oscars in their respective years.
Villeneuve is expected to start shooting Dune Messiah, the third movie of the Dune franchise, later this year with a potential release date in 2026.