The festival is being planned for next May in neighborhoods below the High Line, a public park on an abandoned elevated railway line on the west side of Manhattan, Billboard.com reported.
In addition to performing, Bowie is charged with choosing the musicians and artists for the 2007 festival.
"I've been particularly excited about seeking out emerging artists and giving them a place in a festival that will also feature some very well-known names," Bowie said.
The rock star was recently quoted saying he was "fed up" with the music industry and would not tour or record during 2006.
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