The ARIA Award-winning Australian singer, who is best known for hit singles such as 'Sunday Best' and 'Holy Moses', will reveal a private collection of poems, photographs, art and music at the Sydney Opera House event.
According to The Daily Telegraph, other music stars such as PJ Harvey, Beth Orton and Mike Patton's Mondo Cane nouveau cabaret show will also present their own artistic collections.
Programme manager Danni Colgan said that the line-up of celebrities contributing to the festival reflects a global hunt in "little corners around the place to see who's doing what".
The festival involves music performances in the State Theatre, the Spiegeltent, The Domain and the Keystone Festival Bar. The headline act for the Festival First Night gala is yet to be announced.
John Malkovich and Emmylou Harris flew over from the US to take part in last year's Sydney Festival.
Washington was discovered by Triple J radio programme Unearthed, which was recently launched as a radio station in its own right.
Watch the video for Megan Washington's 'Holy Moses' below: