"One Love Manchester" will take place on June 4 at the Emirates Old Trafford in Manchester. Coldplay, Katy Perry, Pharrell, Justin Bieber, Miley Cyrus, Niall Horan and Take That will also take the stage.
The concert will raise money for those affected by the suicide bombing that took place following Grande's concert last week.
All proceeds from the show will go towards the "We Love Manchester Emergency Fund," in partnership with the British Red Cross and Manchester City Council, according to a press release obtained by CNN.
Tickets for the event go on sale June 1 via Ticketmaster.
In an open letter on Twitter, Grande called the attack "heinous" and praised her fans for their "kindness, love, strength and oneness."
"Music is something that everyone on Earth can share," she wrote in the letter she tweeted on Friday
. "Music is meant to heal us, to bring us together, to make us happy."
In the wake of the attack, Grande suspended her "Dangerous Woman" tour which will affect dates through June 5. She has not said when she plans to return to her tour but Live Nation, the concert's promoters, are offering refunds for all ticket holders.
Former Oasis founder Liam Gallagher performed his own show in Manchester,
his home town, on Tuesday night, with all profits going towards the We Love Manchester Emergency Fund.
Posts on social media revealed 22 candles, one for each of the victims, placed on the stage. After Gallagher left the stage, videos showed the crowd breaking spontaneously into the song "Don't Look Back in Anger."
Police still searching for suitcase
The investigation into the deadly attack continued Tuesday, as police announced they were still searching for the blue suitcase regularly used by bomber Salman Abedi.
"We are especially keen to find out why he kept going back to the Wilmslow Road area and we need to find the blue suitcase which he used during those trips," the police statement said.
A public plea for any information around the suitcase was first released by police on Monday, in a statement asking for anyone who had seen the case to immediately tell police.
Three people who were taken into custody since the bombing at Manchester stadium a week ago have been released, the statement added.
"We have released without charge two men aged 20 and 24 from the Fallowfield area and a 37-year-old man from the Blackley area," police said.
More than a dozen people have been arrested by Manchester police in the past week, as authorities work to dismantle the network around Abedi.