The three-time Tour winner and Team Sky will ride the Towards Zero Race on the city's Albert Park circuit on Australia Day.
The 26 January men's and women's races will lead into the Cadel Evans Great Ocean Road Race in Geelong on the weekend of 28-29 January.
Organisers also confirmed at Wednesday morning's race announcement that 13 of the 19 men's WorldTour teams will compete at Albert Park and in the Cadel Evans event.
Four ProContinental squads will also be represented along with an Australian National Team outfit.
The Albert Park race will be a kermesse, or street circuit event, will be pancake-flat and will be tailor-made for the sprinters.
The men's race will be 22 laps of the 5.3km circuit, for 116km in total. The women will have 12 laps and their race will be 63.6km.