From the Star Online:
Michael Sheen (The Queen, Frost/Nixon) is in negotiations to play classic James Bond villain Ernst Stavro Blofeld, The Guardian newspaper reports.
While the rebooted 007 (Daniel Craig) has tangled with a shadowy organization known as Quantum in his first two outings, not much is known about the agency or its real leaders.
If Blofeld is being considered as a choice of villain in what was originally said to be a trilogy, then it could well be that Quantum has replaced the old SPECTRE in the Bond Rogues’ Gallery.
In the earlier films, SPECTRE (SPecial Executor for Counter-intelligence, Terrorism, Revenge and Extortion) was the big bad enemy agency, and Blofeld was its head.
He finally showed his face in You Only Live Twice, where he was played by Donald Pleasence as a cultured, cat-loving gentleman with a monocle and a scar.
Other actors who have played the role include Charles Gray and Telly Savalas. Blofeld was last seen being dropped down a factory chimney in the pre-credit sequence of For Your Eyes Only.
Besides being a thorn in 007′s side, Blofeld also murdered his wife Tracy (Diana Rigg) in On Her Majesty’s Secret Service.
Source.
The Many Incarnations of Blofeld:

John Hollis as Blofeld in FOR YOUR EYES ONLY. He's never called Blofeld on screen. But it's clear that's who he is.
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