The Britpop band join Florence + the Machine and Bon Iver on the lineup. It takes place in Gothenburg, Sweden this summer.
The Black Keys, Azealia Banks, Billy Bragg and St. Vincent have all been previously confirmed for the festival, which will run for three days from August 9.
Tickets for the show, which is held in a 137 hectare park, are on sale now and can be purchased from the festival's official site.
Further additions to the bill are expected to be announced in the coming weeks.
Last year's event saw sets from Pulp, Noah and the Whale, Fleet Foxes and The Hives.
> Kanye West joins Prince on stage at Way Out West festival 2011 - video
Watch Blur's performance at the Brit Awards 2012 below: