The 22-time Grand Slam winner has never played in the 2-7 January tournament before, preferring to warm-up for the Australian Open at the Hopman Cup in Perth in recent years.
"We are obviously over the moon with this news. Serena is one of the biggest sporting stars on the planet," tournament director Karl Budge said.
Williams, the reigning Wimbledon champion, is currently ranked No 2 in the world after Angelique Kerber broke her 186-week reign at the top.
She is likely to regain the No 1 spot if she can claim a seventh Australian Open crown at the season-opening Grand Slam in Melbourne.
