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The bout in Saudi Arabia, which will take place on 20 August, comes 11 months after Ukrainian Usyk defeated Joshua at the Tottenham Hotspur Stadium in north London to secure the WBA, WBC and IBF heavyweight titles.
Joshua possessed a rematch clause in his contract but there were initially some question marks as to whether he would activate his option or step aside to allow Usyk to face off against Tyson Fury in a heavyweight unification bout.
Further delays then occurred following Russia's invasion of Ukraine, with Usyk returning to Kyiv to help defend his nation's capital.
Dubbed the 'Rage on the Red Sea', Joshua's bout with Usyk in Jeddah comes almost three years since he reclaimed his heavyweight belts with victory against Andy Ruiz Jr, who had inflicted a first career defeat upon the Briton.
Joshua's record now stands at 24-2 with 22 knockouts, while Usyk took his record to 19-0 with 13 knockouts with victory against the Brit.
The bout will be Joshua's 12th-consecutive heavyweight title fight and he lay down the gauntlet ahead of the August clash.
"What a roller coaster journey, fighting for the heavyweight championship of the world for the 12th consecutive time," he said.
"I won the belt, unified the division won another belt, lost the belts, became two-time unified heavyweight champion and now have my date with history set to become three-time Unified heavyweight champion of the world. What an opportunity.
"Fighting championship level back to back has had its pros and cons, but I decide every day to get stronger, to learn from my experiences and grow. A happy fighter is a dangerous fighter and I am the happiest and most motivated I have been."
Usyk's camp referenced the ongoing struggles in Ukraine following the announcement, with promoter Alexander Krassyuk saying: "The rematch is on the way. The fight will be much bigger and more spectacular than the first. It is new history in the making.
"Being a part of this event is a huge honour. Our country is now fighting for its heritage. Our mission is to expand its legacy. With the help of the Lord we will achieve this."