The "Another Round" star, who last year replaced Johnny Depp as "Fantastic Beasts" villain Gellert Grindelwald, has been added to the cast of James Mangold's film but details of his role have not been disclosed.
Mikkelsen also played a bad guy in James Bond film "Casino Royale".
Producers hope the film will start shooting this summer (21). The film is set to hit cinemas in July, 2022.
The fifth movie has been in the works since its official announcement in 2016 and, after a series of delays last year (20), Disney chiefs finally set the movie's release date for 2022.
The film will be the follow-up to 2008's "Indiana Jones and the Kingdom of the Crystal Skull", which earned over $790.6 million (£568.7 million) at the global box office.
"Indiana Jones 5", however, drew mixed reactions from movie fans and one criticism came from Patrick Schwarzenegger. "I love Indiana Jones but just not sure about this," the son of Arnold Schwarzenegger tweeted following Phoebe Waller-Bridge's casting.
Fellow actor Elijah Wood disagreed, "Not sure about what exactly? the mighty force of Phoebe Waller-Bridge? the brilliant James Mangold?"
Patrick then clarified he didn't have issues with the casting or the director but was skeptical about the idea of making another "Indiana Jones" installment.
The producers haven't responded to the criticisms, but director James Mangold recently said, "I'm thrilled to be starting a new adventure, collaborating with a dream team of all-time great filmmakers."
"Steven, Harrison, Kathy, Frank, and John are all artistic heroes of mine. When you add Phoebe, a dazzling actor, brilliant creative voice and the chemistry she will undoubtedly bring to our set, I can't help but feel as lucky as Indiana Jones himself."