The Minnesota Twins have played at the site since its 2010 opening.
The selection marks the third time the All-Star Game has been played in Minnesota, after events in 1965 at Metropolitan Stadium and in 1985 at the Hubert H. Humphrey Metrodome.
Selig said the choice of Target Field was "especially meaningful" for him due to his relationship with the Twins' late owner, Carl Pohlad, who died in 2009 at age 93.
"The Midsummer Classic will be a celebration of Carl's legacy, one of our game's model franchises and the spectacular Target Field, which deserves to be showcased on this global stage," Selig said.
Current Twins owner Jim Pohlad, Carl's son, added, "My father and Commissioner Selig were very close, so we are thrilled to have the commissioner at Target Field to announce an All-Star Game coming to the Twin Cities."
The 2013 All-Star Game will be held at Citi Field in New York, home of the Mets.