The programme will see a group of eight celebrities - rumoured to include Ricky Gervais, Gordon Ramsay and Teri Hatcher - competing in a variety of extreme sports to win money for local community projects.
On Evans's appointment, a source told The Sun: "This year, Chris has revived his career by taking over Radio 2's Breakfast Show from Sir Terry Wogan and landing the Friday night spot on The One Show.
"Bosses thought it would be a good time to get him back on Channel 4 and this looked like the perfect show for him."
Evans, who previously presented The Big Breakfast and TFI Friday on the channel, said: "Famous and Fearless will be brilliant. Simply a huge, ambitious show with celebrities, monster trucks and an arena crowd. What's not to like?"
Balding previously featured on Evans's old Radio 1 show. She added: "I'm hugely excited to be working with Chris again."
The six live shows will be filmed at Liverpool's Echo Arena and begin on January 2, 2011. To apply for tickets visit the Famous and Fearless page of the Channel 4 website.