The Academy has revealed that Streisand will sing on the film industry's biggest night for the first time since 1977.
Oscars executive producers Craig Zadan and Neil Mero said in a statement: "In an evening that celebrates the artistry of movies and music, how could the telecast be complete without Barbra Streisand?
"We are honoured that she has agreed to do a very special performance."
Streisand famously won the 'Best Actress' Oscar for Funny Girl, also earning a 'Best Original Song' award for 'Evergreen' from A Star Is Born.
This year's Academy Awards will also feature Adele performing her hit 'Skyfall' from the latest James Bond movie.
It has been reported that all six Bond stars - Sean Connery, George Lazenby, Roger Moore, Timothy Dalton, Pierce Brosnan and Daniel Craig - will also appear to honour the franchise's 50th anniversary.
The 85th Academy Awards will take place on February 24.
Photo gallery - Oscars nominees: