The concert will take place Jan. 28, two days after the Grammy Awards, at the Los Angeles Convention Center. The event will then be broadcast in April.
Usher, Common, Beck, H.E.R., Chris Martin of Coldplay, Earth, Wind & Fire, Gary Clark Jr., St. Vincent and Juanes are also set to perform alongside Prince collaborators Morris Day and the Time, his former band The Revolution and Susanna Hoffs of The Bangles.
Sheila E. will serve as the musical director alongside Jimmy Jam and Terry Lewis.
Tickets are on sale now.
"Prince. The Purple One. His Royal Badness -- regardless of how you identify him, he is indisputably one of the greatest musical virtuosos of all time," Recording Academy President and CEO Deborah Dugan said in a statement.
"With his subversive attitude and commanding nature, he straddled musical genres and created electrifying music that was bursting with character. He continues to serve as an inspirational icon for artists and fans worldwide, and we are honored to pay tribute to his legacy," she continued.
Prince died at the age of 57 in April 2016 from a fatal, self-administered dose of fentanyl, a powerful painkiller.