Pop stars Justin Bieber, Katy Perry, Miley Cyrus, and British band Take That, Coldplay, Pharrell Williams, Usher and One Direction singer Niall Horan will also perform, organisers revealed in a statement.
Net ticket proceeds will go to the "We Love Manchester Emergency Fund" set up by the local council and the British Red Cross, to help the grieving families and victims, and Ariana is offering free tickets to all those who were at her Manchester show in May 22.
The 23-year-old tweeted details of the gig, with the One Love logo featuring the bunny ears she is known for wearing. Her manager Scooter Braun also tweeted the message: "We stand with you."
Earlier this week, the American singer addressed fans with an open letter via social media: "There is nothing I or anyone can do to take away the pain you are feeling or to make this better. However, I extend my hand and heart and everything I possibly can give to you and yours, should you want or need my help in any way. We will not quit or operate in fear. We won't let this divide us. We won't let hate win."
Sunday's show will take place at Manchester's Old Trafford cricket ground and will be broadcast live by BBC television and radio, Tuesday's statement said.