The actress-turned-singer is joining the Time Lord for a one-off Christmas special, called Voyage of the Damned.
The 39-year-old began filming for the festive show in Cardiff this week and the first picture of her in character with David Tennant has been released.
Writer and producer Russell T Davies said the episode would be "ambitious".
Minogue follows in the footsteps of comic actress Catherine Tate, who starred in the Christmas special last year.
"It is an incredible thrill to be joining David and the entire Dr Who production for this year's Christmas special," Minogue said.
"Doctor Who enjoys a unique history and it is going to be very exciting to be a part of that."
Christmas promise
Tate has now been recruited to play the coveted role of the Doctor's new assistant when the series returns next year.
Minogue will join Tennant for Voyage of the Damned, an hour-long show following on from the current series, which has just ended in the UK.
"This will be the most ambitious and best Christmas episode yet," promised executive producer Russell T Davies, who has also written the script.
There had been rumours for several weeks that Minogue, who halted her Showgirl world tour for 18 months when she was diagnosed with breast cancer, would appear in the show.
'Excited'
And Davies said he was "delighted and excited" to confirm the singer's participation.
Minogue, whose debut single I Should Be So Lucky topped the charts in 1988, is also currently working on her 10th studio album.
In last year's Christmas special, Catherine Tate played a woman who was upset at being transported into space as she walked down the aisle on her wedding day.
The episode, broadcast on BBC One on Christmas Day, attracted an audience of 9.4 million.
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