Showbiz
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The Blur and Gorillaz singer will also star in the show, called Doctor Dee.
The musical centres on the 16th-century alchemist and spy John Dee, who was also Elizabeth I's medical and scientific adviser.
Festival director Alex Poots promised that Doctor Dee would be a "big, spectacular show".
Poots added. "I know that Damon's passionate about it and he's already written some incredibly beautiful songs, some anthemic songs."
Albarn recently recorded the soundtrack to a short film - based on a children's book by his sister Jessica - that is narrated by Jude Law.
It was announced in December that Albarn plans to reunite with Blur for a possible series of recording sessions this year.
More: Damon Albarn, Showbiz
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