The young pop stars will now follow in the footsteps of Madonna, Michael Jackson and Beyonce, who have all endorsed the fizzy drinks brand.
The band members are to appear in an advert with Drew Bees, the NFL superstar quarterback who plays for the New Orleans Saints.
The ad is set to be screen across the US and will be highly lucrative for band members Harry Styles, Zayn Malik, Niall Horan, Liam Payne and Louis Tomlinson. All of the brand members are aged 20 or under.
Specific details of the ad campaign are expected to emerge in the coming weeks.
One Direction, who found fame on 'The X Factor' in the UK, have a proved a hit in the US, recently selling out a concert in Madison Square Garden.
The PepsiCo owned fizzy drinks brand has also worked with global superstars such as David Beckham and Britney Spears.
The original story was reported in The Sun. PepsiCo said the story was "speculation".Follow @johnreynolds10