The legendary musicians - who have shared a stage many times previously, beginning in 1976 at a farewell show for Dylan's backing band - will take to the stage on July 12 though it's not yet clear in which order they will play.
Speaking of the incredible joint booking, James King - Senior Vice President of AEG Presents, organisers of the concert series - said: ''Barclaycard presents British Summer Time has always tried to deliver the greatest possible one off live experiences for music fans in London and being able to bring together two of the biggest cultural icons together for this historic day of music counts as possibly the biggest event we have ever delivered in Hyde Park.''
Young, 73, previously topped the bill at the annual event back in 2014 with his backing band Crazy Horse.
The pair have a long-standing history and 'Old Man' singer Young previously describing Dylan, 77, as the master of the songwriting craft.
He said: ''I'll never be Bob Dylan. He's the master. If I'd like to be anyone, it's him.''
'Blowin' In The Wind' singer Dylan has always recognised the similarities in their pair's early folk work and he once joked it ''bothered'' him when Young had a hit with 'Heart of Gold' which shared many of the hallmarks of his acoustic style.
Speaking to Uncut magazine in 2016, Dylan said: ''The only time it bothered me that someone sounded like me was when I was living in Phoenix, Arizona, in about '72 and the big song at the time was 'Heart of Gold'. I used to hate it when it came on the radio. I always liked Neil Young, but it bothered me every time I listened to 'Heart of Gold'. I think it was up at number one for a long time, and I'd say, 'S**t, that's me. If it sounds like me, it should as well be me.' ''
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