The actress will play the sister of the murdered Gianni Versace in the anthology series.
The third in the "American Crime Story" anthology—following the Emmy-award-winning "People v. O.J. Simpson" and "Katrina"—"Versace" is based on the book "Vulgar Favors" by Maureen Orth.
The Oscar-winning actor Penelope Cruz will star opposite Edgar Ramirez (Gianni Versace) and Darren Criss (serial murderer Andrew Cunanan) as the murdered designer's sister, Donatella, who would go on to become vice president of the Versace Group.
This announcement marks Cruz' US TV debut.
"Versace: American Crime Story" will begin production in April, with its premiere planned for 2018.
(Related: Paris Haute Couture Week: The Many Sides of the Atelier Versace Woman)