"Everybody Knows" ("Todos Lo Saben") will mark only the second Spanish-language film to open Cannes, following Pedro Almodovar's Bad Education, which kicked off the festival in 2004. It is also one of the few openers in recent memory not in either English or French.
The festival will likely make an official announcement about the selection of Everybody Knows as the opening night film in the coming days.
The choice clearly reflects the outlook of Cannes artistic director Thierry Fremaux, who has aimed in recent years at kicking off the festival with films that bring together a critically acclaimed auteur, including the likes of Wes Anderson and Arnaud Desplechin and equally acclaimed cast.
Iranian director Farhadi has previously fielded two films in competition on the Croisette, The Salesman in 2016 and The Past in 2013. Written by Farhadi, it follows the journey of Laura (played by Cruz), who travels with her family from Buenos Aires to her native village in Spain for a celebration. The family reunion gets disrupted by events that change the course of the characters' lives.
The movie will be released in France on May 9 - the day after its red-carpet premiere in Cannes.
The film is the third collaboration between Farhadi and producer Alexandra Mallet-Guy after The Salesman and The Past . The Salesman scooped two awards at Cannes - best script for Farhadi and best actor for Shahab Hosseini - before going on to win the Oscar for best foreign-language film. The Past earned Berenice Bejo a best actress award at Cannes.
Farhardi shot Everybody Knows in Torrelaguna, a small town north of Madrid, entirely in Spanish, a language he does not speak but which Mallet-Guy said was no impediment.
"He has a wonderful intuition and a talent for listening to the music of words," Mallet-Guy said during shooting of the film last summer.
The Cannes Film Festival runs May 8 to 19.