The US actor, 34, will also star in the sports drama film, which is a spin-off from the Rocky franchise.
Jordan plays boxing champion Adonis Creed, the son of world heavyweight champion Apollo Creed from the original Rocky movies.
Tessa Thompson and Phylicia Rashad are expected to reprise their roles for Creed III. Thompson accidentally let slip Jordan's intention to direct the third Creed film back in December 2020.
Speaking in an interview with MTV, she said: “He is directing the next Creed.”
Read more: Stallone is making a Rocky IV director’s cut
Adding a nod to his recent ascent to People magazine's Sexiest Man Alive, she went on: “So it’s going to be ammo, I think, for me when he is engaging with me as a director.
“I’m just going to tell him to dial down the sexiness.”
In directing the Creed sequel, Jordan follows in the footsteps of Sylvester Stallone who – after starring and writing the first Rocky film in 1976 – went on to direct Rocky II, Rocky III, Rocky IV and 2006's Rocky Balboa.
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In a new statement Jordan said the time felt “right” to take a seat in the director’s chair, adding he had learned from working with Ryan Coogler and Denzel Washington.
He said: “Creed III is that moment – a time in my life where I’ve grown more sure of who I am, holding agency in my own story, maturing personally, growing professionally, and learning from the greats like Ryan Coogler, most recently Denzel Washington, and other top tier directors I respect. All of which sets the table for this moment.”
The first Creed film – directed by Coogler – arrived in 2015 to critical acclaim and box office success.
The sequel was released in 2018 to a similar response. It's not yet clear whether Sylvester Stallone will return as Rocky.
Last year Jordan was named sexiest man alive by People magazine.
Creed III is set for release in November 2022.