You read correctly, the new Mortal Kombat game, on the Playstation 3 version, will feature the star of the God of War serie, Kratos, said the Playstation Magasine (january edition).
He's gonna have his own fatalities (and we all know how brütal Kratos can be), moves, and battleground. The only thing lacking is a story mode for him (unless you consider the God of War games as his story mode ;).
Kratos should fit pretty well with the characters for the level of violence, blood and gore we can see in his own games. Nothing was said about other consoles exclusive characters possibilities (if they'll have exclusives).
Images from http://www.gamesradar.com