The Rock group with be paired with the Canadian DJ to perform his remixed version of their track 'Rope' - which is nominated for a trophy - at the ceremony in Los Angeles on Sunday (12.02.12).
The dance section will take place in a specially erected tent outside the Staples Center, where the Grammys are held, and watched by 1,000 fans.
Show producer Ken Ehrlich said: "My feeling about dance is it's such an immersive experience for the participant, that to put it on stage where the audience is not a part of it, I don't know, until we came up with the idea of doing it this way, I don't know if it ever would have worked."
He added the performance is the "most ambitious number that we've ever done outside the Staples Center."
He said: "House was underground for so long. I always wanted house to be as big as rock music and hip-hop. And it's happening. It's even bigger. I'm not only happy for myself but for the house community."