The 007 star - who played long-suffering boffin Q in 17 Bond movies - will be remembered on a memorial plaque in Newport.
Llewelyn - who was killed in a car crash in East Sussex last December at the age of 85 - was much-loved by a host of Bond stars such as Sean Connery, Roger Moore and Pierce Brosnan.
And his fans hope that a
former 007 star - possibly fellow Welshman Timothy Dalton - will unveil the plaque.
The decision to mark his birth place at Blaen-y-Pant House in Malpas, Newport, comes after a campaign to honour his contribution to acting.
A spokeswoman for Newport council said: "We can confirm that we will be installing a plaque in memory of Desmond Llewelyn."
The news was greeted with joy by Emma Kenney, who has campaigned for a memorial.
She said: "That is great. It is incredible. I am thrilled that he is going to get some sort of recognition in Newport.
"I have always said that he should always have something at his place of birth. It has been worth all the hard work. I hope there is some sort of ceremony. I would like to be there."
Members of the Bettws in Bloom committee want to build a memorial
garden to go with the plaque.
Edna Evans, of Bettws in Bloom, said: "It will be tasteful and encourage butterflies.It would be wonderful if we could get one of 007 stars to unveil it."
Desmond Llewelyn died despite efforts by hospital doctors to save him after he was cut from the wreckage of his Renault Megane.
He was returning to his home at Bexley, East Sussex, after a book-signing session.
His last film - The World Is Not Enough starring Pierce Brosnan as James Bond - was Llewelyn's 17th film as Q since his debut in 1963.