The full line-up of Graham Coxon, Alex James, Dave Rowntree and Damon Albarn will be onstage together for the first time since their Royal Festival Hall performance in 2000.
The concert will take place on Friday July 3, and tickets will be on general sale from 9am this Friday at www.livenation.co.uk.
Coxon left Blur six years ago and the band's last album, Think Tank, was released in 2003.
In a joint interview, Albarn and Coxon explained that they had put their differences behind them.
"It just felt it was right again," said Albarn.
"It somehow feels like there's something for us to do again, we're not completely useless or pointless, we've got a reason to exist."
Coxon said the band were "making public what's been going on a little bit privately".
There have been reports of further dates including a possible appearance at next year's Glastonbury festival.
Albarn promised fans that there were more shows on the horizon.
"We'll do something in London because that seems sensible," Albarn told the NME, "but we're also playing in other parts of the country, working up to there."
Formed in Colchester in 1989, the band have recorded seven studio albums and had a string of top 10 singles including two number ones with Country House and Beetlebum.
Blur hit the height of their fame as the poster boys for Brit Pop in the mid 1990s, and were known for their chart battles with contemporaries Oasis.
Albarn has since gone on to form virtual band Gorillaz, to huge commercial and critical success.
His projects have included supergroup The Good, The Bad & The Queen and the much-lauded Monkey: Journey To The West.
Guitarist Coxon released solo work since quitting the band and has collaborated with Pete Doherty.
Bassist Alex James swapped his bad boy image to become a Cotswolds cheese maker and is a talent judge on Channel 4's Orange Unsigned Act.
Drummer Dave Rowntree made an unsuccessful bid to become a Labour councillor last year.
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