The band - who played a number of reunion shows at the park in summer 2009 - will be joined on the bill by The Specials and New Order for the event on Sunday, August 12.
"We're rowing in.. going for gold.. grabbing the baton.. for the high jump.. No, hang on, is that right? Fact is, Blur have accepted the invite to headline the Olympics' Closing Ceremony Celebration Concert in Hyde Park on 12th August," an announcement on the band's Facebook page read.
The gig has been organised by BT London Live as part of a series of events to mark the Games. However, fans have to pre-register for further ticket information at a special website, with tickets available from Friday (February 24) at 9am.
Blur will be presented with the Outstanding Contribution To Music award at tonight's Brit Awards (February 21), with the band tipped to play an eleven-minute set at the event.
Damon Albarn and Graham Coxon debuted a new song titled 'Under the Westway' at a charity show last weekend.
Watch Blur perform 'Under the Westway' at the Shepherd's Bush Empire below: