Dapper Daniel Craig waves to fans as he arrives to promote his explicit same-sex romance film Queer in Venice as he's tipped for an Oscar nomination

Daniel Craig cut a dashing figure as he arrived on the jetty Venice to promote his new film Queer at the annual Film Festival on Tuesday morning.

The actor, 56, has been tipped for an Oscar nomination in the Best Actor category for his portrayal of an American expat and war veteran named William Lee in the same-sex romance movie.

Daniel, who has yet to be nominated for an Academy Award despite his Hollywood career, recently debuted his long shaggy blond locks and opted for a classic white shirt and blue jeans with trainers for the occasion.

He smiled and waved as he headed to the photo call for the explicit same-sex drama, which will premiere at the festival later in the day.

The James Bond actor, who is in the city with his wife Rachel Weisz, sported a pair of back sunglasses and accessorised with a watch.

He has taken fans by surprise in recent months with his new do' for his upcoming film Wake Up Dead Man: A Knives Out Mystery, which began shooting in June. 

Daniel has reprised his role as Detective Benoit Blanc for the third instalment with the film set for a release date next year.

Daniel is in town to promote his new movie Queer, which will premiere at the festival on Tuesday September 3.

Directed by Luca Guadagnino, Queer is based on William Burroughs' semi-autobiographical novella and stars Daniel as American expat and war veteran William Lee, who has a romance with a younger man, Eugene Allerton (Drew Starkey), a drug addict and discharged Navy serviceman.

Initial reviews suggest moviegoers will be left shocked by the explicit nature of some of the key moments in the movie.

One much talked about scene, in particular, sees Daniel perform oral sex on Allerton.

Venice Film Festival boss Alberto Barbera said he believes Daniel has given 'the performance of a lifetime' in Queer, and added he'd be surprised if we don't see the British actor at the Academy Awards next year.

It would mark the first ever Oscar nod for Craig.

The 81st Venice International Film Festival is organised by La Biennale di Venezia and is being held on the Lido di Venezia from August 28 to September 7.

Sigourney Weaver will receive the prestigious Golden Lion for Lifetime Achievement award during the festival. 

In the film, Allerton initially rejects Lee's advances but eventually relents. 

A source told the Daily Mail reported: 'It's a long way from Bond, and very explicit. Craig is brilliant in the film.' 

Venice Film Festival boss Alberto Barbera said he believes Daniel has given 'the performance of a lifetime' in Queer, and added he'd be surprised if we don't see the British actor at the Academy Awards next year. 

Barbera told a journalist that Daniel had 'a couple of sex scenes that are quite full-on'.

In an interview, Guadagnino commented: 'Queer will be my most personal film. It's a tribute to Powell and Pressburger.

'I've seen The Red Shoes at least 50 times and I think they would appreciate the sex scenes in Queer, which are numerous and quite scandalous.' 

The novella was penned between 1951 and 1953 but not published until 1985. Much of it was written in the aftermath of the death of Burroughs' wife Joan Vollmer – who he shot in the head during a drinking party in Mexico City. 

Their four-year-old son was in the room at the time. Burroughs said he was trying to shoot a glass off her head, William Tell style, but later changed his story to say the weapon misfired. 

He was convicted of manslaughter in his absence, after fleeing to the US. 

Daniel lives mostly in New York these days with actress Rachel and their young daughter.