Also joining the cast are Bruce Willis, Kate Hudson, Danny McBride and Zooey Deschanel which is being directed by Barry Levinson, said the Hollywood Reporter.
The casting news comes two weeks after LaBeouf tweeted that he was retiring from "all public life" because of "attacks against his artistic integrity."
The actor had announced that he would retire following allegations that he had plagiarised the work of a graphic novelist for his short film.
'Rock the Kasbah' is about Richie Vance, a a has-been rock manager who takes his last remaining client on a USO tour of Afghanistan.
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