The 'Diva' singer - who performed at his first inauguration in 2009 and supported him throughout his campaign for a second term - is set to sing the National Anthem at the prestigious event.
The Presidential Inaugural Committee told USA Today that Kelly Clarkson will also perform 'My Country Tis of Thee', while James Taylor will sing 'America The Beautiful' on the West Front of the US Capitol in Washington, D.C. on January 21.
The 51-year-old President said in a statement: ''Vice President Biden and I are honoured to have these wonderfully talented musical artists perform at the Inaugural ceremony. Their music is often at the heart of the American story and speaks to folks across the country.''
Beyonce, who is married to rapper Jay-Z with whom she shares one-year-old daughter Blue Ivy - also performed a cover of Etta James' 'At Last' for the President and First Lady Michelle Obama during the Neighbourhood Inaugural Ball four years ago.
The 31-year-old singer has long been one of the President's most high profile supporters.
She wrote a letter of praise for him ahead of last November's US presidential election, in which she credited him with inspiring the future generation, including her own daughter.
She wrote: ''Every day we see your heart and character, inspiring us to give more of ourselves.
You are the leader to take us from where we are to where we need to be. You are the reason my daughter and nephew will grow up knowing that they can truly be ANYTHING they want to be.
''All my respect and adoration, Beyonce.''
She also designed a T-shirt to raise money for President Obama's re-election campaign.