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The news was announced on ITV’s Lorraine.
The actor, 52, joked that she wanted to try the BBC ballroom contest before she got too old and couldn’t walk.
Read more: Every Strictly 2021 contestant so far
Saying it had been a tough year, she said: “I just want to grab life by the balls and just enjoy it!”
— BBC Strictly ✨ (@bbcstrictly) August 12, 2021
“I don’t mind if people even laugh at me, I just want people to laugh and enjoy and be happy,” she added.
Wadia — best known as Zainab Masood in the BBC soap — joked that she tends to dance like nobody is watching so could do well if the judges wear blindfolds.
She joins Greg Wise, Tilly Ramsay, Dan Walker, Katie McGlynn, Rhys Stephenson, Sara Davies, John Whaite, Robert Webb, AJ Odudu and Tom Fletcher on the dancefloor.
The show was cut short last year amid the coronavirus pandemic, from 13 weeks to just nine. This led to the cancellation of both the popular Halloween Week and the annual trip to Blackpool's famous Tower Ballroom.
Bosses have promised fans a full-length series this year but said the show will not be able to return to Blackpool.
Watch: Who are the 2021 Strictly Come Dancing celebrities?