The rocker has teamed up with her daughter, Jesse, and members of art group Soundwalk Collective to create Killer Road, in which Smith will recite some of the tragic star's last pieces.
Nico, known for her collaborations with Lou Reed's The Velvet Underground on their eponymous 1967 debut album, passed away in 1988 after suffering a heart attack while riding a bicycle on the Spanish island of Ibiza. She hit her head as she fell and died from a severe cerebral haemorrhage.
The Crossing the Line festival, presented by officials at the French Institute Alliance Francaise (Fiaf), opens on 8 September (14).
The eighth annual event, which explores the dialogue between the artist and the public, will also feature the world premiere of visual artist Jessica Mitrani's collaboration with Spanish actress Rossy de Palma in a production about 19th century investigative journalist Nellie Bly, according to the New York Times.