The performance agreement, which is in partnership with AEG Live, includes approximately 200 shows.
AEG Live described "Cher at The Colosseum" as a spectacle designed exclusively for the 4,300-seat venue.
The show will feature choreography from Doriana Sanchez, state-of-the-art lighting and special effects, and costumes created by famed fashion designer Bob Mackie.
"I started in Vegas at Caesars, so I've come full circle," Cher, 61, said in a statement. "I'm back and I plan to give my fans the best experience yet. I think everybody knows I only do things in a big way."
The Oscar and Emmy Award-winning performer has released more than 25 albums and sold more than 100 million records worldwide in her Grammy-winning solo recording career.
"The fan anticipation leading up to this announcement has been unprecedented," said John Meglen, co-CEO and president of AEG Live/Concerts West. "Cher's talent is legendary around the globe and there is simply no one like her."