Waltz has form for playing antagonists, with a memorable performance as SS Colonel Hans Landa in the Quentin Tarantino-directed 'Inglourious Basterds' earning him both an Oscar and a Cannes Best Actor Award.
Director Sam Mendes confirmed the cast list for the latest instalment in the Bond franchise at a press event at London's Pinewood Studios on Thursday, putting an end to weeks of speculation.
The movie will be the 24th featuring the British super-spy and once again stars Daniel Craig in the leading role.
Little is known of the plot of the movie, although the producers have said that filming will take place in London, Rome, Tangiers, Mexico City and Austria.
During the press conference, Sir Roger Moore tweeted "So Blofeld is back!", linking Waltz's character name with that of Bond's childhood ski instructor.
Filming will start on Monday December 8th.
The Austrian double-Oscar winner was honoured recently with his own star on Hollywood's Walk of Fame.
Waltz acknowledges his German nationality, but revealed in an interview that he feels himself to be Austrian, since Germans don't have a sense of humour.
"I was born in Vienna, I grew up in Vienna, I went to school in Vienna, I graduated in Vienna, I studied in Vienna, I started my career in Vienna, I did theatre for the first time in Vienna, I did film for the first time in Vienna. There are also a few other Viennese details," he said a few years ago. "But how much more Austrian can you get?"
Waltz has subsequently been offered Austrian citizenship, although it's not yet known if he plans to renounce his German passport.