The actress is said to be in line to take on the role of the title character's good-natured teacher, who was portrayed by Embeth Davidtz alongside Mara Wilson in the 1996 big-screen adaptation of Roald Dahl's children's classic.
According to Variety, Lynch is set to join the upcoming Netflix version based on the 2010 stage production "Matilda the Musical".
Matthew Warchus - who directed the musical - will helm the film while original playwright Dennis Kelly will adapt the screenplay, featuring music and lyrics by Tim Minchin.
The movie is based on the 1988 classic novel about a five-year-old girl named Matilda, whose gift for telekinesis helps her to overcome bullying from her parents, classmates, and terrifying school principal Miss Trunchbull.
The actress - the first black woman to play a 00 agent in the iconic spy series - recently revealed she wanted to represent the black community authentically in the franchise and she "searched" for moments in the script that audiences could identify with.
"A character is too slick, a cast-iron figure? That's completely against what I stand for," she said. "I didn't want to waste an opportunity when it came to what Nomi might represent. I searched for at least one moment in the script where black audience members would nod their heads, tutting at the reality but glad to see their real life represented."
"In every project I am part of, no matter the budget or genre, the black experience that I'm presenting needs to be 100 per cent authentic."