The 74-year-old actor — who received an Oscar nomination for his performance in 1997's Boogie Nights — will play Paul Anderson, a once legendary CIA operative who also once was cast out of the agency and serves as a kind of warning and lesson for fellow burned spy Michael Westen (Jeffrey Donovan).
"Things have not gone well for him since he left the spy service," series creator Matt Nix told EW about Reynolds' character. "He's now working as a bartender under an assumed name, and he gets into trouble with some very nasty Russian guys."
"He's not precisely like Michael," Nix said of the similarities between the two ex-CIA agents. "He's Michael should Michael succumb to some of the demons that haunt ex-spies."
Reynolds underwent heart bypass surgery earlier this year.
Burn Notice returns for Season 4 on June 3.