The announcement was made Monday by Oscar telecast producers Bruce Cohen and Don Mischer.
Both Franco and Hathaway have previously appeared on the telecast but not as hosts.
"James Franco and Anne Hathaway personify the next generation of Hollywood icons -- fresh, exciting and multi-talented. We hope to create an Oscar broadcast that will both showcase their incredible talents and entertain the world on Feb. 27," Cohen and Mischer said in a joint statement. "We are completely thrilled that James and Anne will be joining forces with our brilliant creative team to do just that."