Coldplay, Katy Perry, Usher, Take That, Pharrell Williams, Miley Cyrus and Niall Horan will also perform at Old Trafford Cricket Ground to raise money for the We Love Manchester Emergency Fund.
The gig comes almost a fortnight after the bombing which killed 22 people at Manchester Arena.
Fans who were at the show will be offered free tickets to Sunday's event, while general sale will start at 10am on Thursday.
Grande, 23, suspended her Dangerous Woman tour after the attack, but later vowed to return to Manchester.
She said: "I don't want to go the rest of the year without being able to see and hold and uplift my fans.
"I'll be returning to the incredibly brave city of Manchester to spend time with my fans and to have a benefit concert in honour and raise money for the victims and their families."
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Image:Justin Bieber will also perform at Old Trafford Cricket GroundMore than £6m has been raised through the We Love Manchester Emergency Fund, which was set up by Manchester City Council and British Red Cross to support survivors and victims' families.
Red Cross chief executive Mike Adamson praised Grande's "gesture of solidarity".
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He said: "This event is an opportunity for people to come together and celebrate things that unite us - music, humanity and the will to do something to help others."
The kick-off time for Manchester United player Michael Carrick's charity testimonial has been changed from 4pm to 2.30pm to accommodate the concert.
Earlier, Greater Manchester Police chief constable Ian Hopkins said he had been working with Grande's management team on the "finer details" of the gig.
"When the idea of the concert came up, the first reaction was we need to speak to the families of the victims and see what they feel," he told BBC Radio Manchester.
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