On Christmas Eve at 8pm, James Cameron's blockbuster 3D epic will be aired on the Sky 3D channel, which is available to all Sky+ HD customers on the top tier package.
The movie forms part of Sky 3D's lineup for the festive season, including sport, documentaries and entertainment programming.
Sir David Attenborough's Flying Monsters 3D, a ground-breaking documentary about the evolution of pterosaurs some 200 million years ago, will premiere on the channel on Christmas day.
Coverage of The Prince's Trust Rock Gala, a musical extravaganza that recently took place at The Royal Albert Hall featuring artists such as Tom Jones, Eric Clapton and Brian May, will air in 3D on December 19.
Tim Burton's Alice in Wonderland will get its 3D TV premiere on Sky 3D on New Year's Eve. On January 1, the channel will air Diversity 3D, a documentary following the dance troupe as they prepare for a sell-out show at the Hammersmith Apollo.
Sky 3D viewers will also be able to watch coverage of the Premier League clashes between Chelsea and Manchester United on December 19, Manchester City and Everton on December 20, and Arsenal and Chelsea on December 27.
John Cassy, the Sky 3D channel director said: "Confirming Avatar in our Christmas lineup for Sky 3D is a huge honour and fantastic news for customers.
"We've got an action packed schedule of 3D programmes on the channel over Christmas with everything from big movie blockbusters and all the major Barclays Premier League fixtures, to the history of pterosaurs with Sir David Attenborough's Flying Monsters.
"We hope 3D will bring people together to enjoy a whole new television experience over this festive and special time of year."
From January 6, Sky will also offer all three of Pixar's Toy Story films in 3D, with Toy Story 3 being available on Sky Box Office and Toy Story 1 & 2 coming to Sky 3D.