Williams has been awarded a wild card for the Australian Open warm-up event from January 5-11 after only returning to the circuit in August at the US Open after a 16-month break.
"She is one of the great players in the modern era and her performances on the court speak for themselves," said tournament director Nicolas Lamperin, who added that she was in "remarkable shape and form".
"Off the court she has made an equally significant contribution to the game and to the development of female players worldwide," he said.
"Venus has had a profound influence on the evolution of women's tennis and has inspired the next generation with her unshakeable passion for the sport."
Williams, who won the Auckland Classic in 2015 when she beat Caroline Wozniacki in the final, has lifted five Wimbledon singles titles, two US Opens and an Olympic gold, in Sydney in 2000.
Lamperin said it was a "privilege" to have Williams back at the tournament.
"All sports fans should take this opportunity to watch one of the sport's all-time greats in action."
Japan's four-time Grand Slam champion Naomi Osaka was also announced as a confirmed entry for the tournament.
The Australian Open begins in Melbourne on January 18.