The title will use the peripheral to capture player movements for a variety of swimming strokes and competitions.
A full career mode will take place across a number of locations, including a Japanese dojo and mountainous outdoor arenas, and concludes with a race against Phelps himself.
"It is an honour for myself and everyone here at 505 to work with Michael Phelps, a truly transcendent athlete who has brought unprecedented glory to competitive swimming," said 505 Games president Ian Howe.
"His guidance and feedback have proven invaluable to the development process, and in-game he will mentor players in their journey from an unknown challenger to a powerful swimmer capable of beating the best in the world."
Michael Phelps: Push The Limit will be available on Xbox 360 in June.