The US singer-songwriter, 73, will take to the stage on 7 July.
The Piano Man’s performance at British Summer Time (BST) will be his only European appearance in 2023.
And it's thought to be the first time that the star - whose other songs include the massive hits We Didn’t Start The Fire and Uptown Girl - has played in the UK in around five years.
The announcement comes shortly before the release of Billy Joel: Live At The Yankee Stadium, a film marking the star's 50 years in the business.
Other acts set to appear at the much-loved BST event next summer include Bruce Springsteen and the E Street Band.
Glory Days singer Springsteen will play two dates, in what will be his BST debut.
This summer, Sir Elton John performed as part of his Farewell Yellow Brick Road tour.
The first presale tickets will be available to American Express card members from 10am on Thursday.
Tickets are set to go on general sale at 10am on 6 October.
The festival started in 2013 and is held across several weekends, featuring top headliners and support from today's rising stars.
Additional reporting from PA.
Watch: Billy Joel biopic titled 'Piano Man' is in the works