Artists including British pop band Florence and the Machine, U.S. pop singer Colbie Caillat, pianist Herbie Hancock and singer-songwriter Elvis Costello will also perform at the show on Dec. 11, a day after the award ceremony in Oslo.
"I am honored to attend the Nobel Peace Prize Concert this year and participate in this historic and momentous event to help spread the message of global peace," Washington said in a statement.
The 55-year-old American has won Oscars for best supporting actor in the civil war film "Glory" in 1990 and for best actor in "Training Day" in 2002.
Last year, American rap artist and actor Will Smith and his wife, the actress Jada Pinkett Smith hosted the Nobel Peace Prize Concert, honoring the 2009 peace prize laureate and Smith fan Barack Obama.
"We're thrilled to have Mr. Washington join us to host this year's Nobel Peace Prize Concert," said Geir Lundestad, secretary of the Norwegian Nobel Committee. "He is the perfect ambassador for this event, which celebrates peace through music and illuminates the notable contributions of the Nobel laureate."
The winner of the 2010 Nobel Peace Prize will be announced in Oslo on Oct. 8. The award is always handed out Dec. 10, the anniversary of prize founder Alfred Nobel's death in 1896