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Summit Entertainment has confirmed that the 15-year-old will star as Jane, a member of the Volturi vampire clan, which Edward (Robert Pattinson) encounters in Italy.
Fanning, who was first linked to the role in January, previously told Access Hollywood that it "would be wonderful" to a land a part in the movie.
Production on New Moon, which is being directed by Chris Weitz, is scheduled to begin later this month, with a slated November release date. Eclipse, the third film in the franchise, has been handed a summer 2010 release.
Speaking to People, co-star Nikki Reed (Rosalie Hale) said: "We did just get a script. We're shooting the rest of the films back to back. Chris Weitz is amazing and I think it's going to be wonderful."
More: Dakota Fanning, Movies
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