The project follows Sherrie (Hough), a small-town girl who moves to Los Angeles to follow her dreams of becoming an actress. There, she catches the eye of the charming, but arrogant, star Stacee Jaxx, to be played by Tom Cruise.
Director Adam Shankman called Hough's audition "nothing short of a miracle" and added that "it was a star-is-born moment" for the former Dancing with the Stars pro.
Hough made her film debut in last year's Burlesque and can next be seen as Ariel in a remake of Footloose.
Production on Rock of Ages is scheduled to begin in May.