The July 20 fight will be staged at the AT&T Stadium in Arlington, Texas, the home of the NFL's Dallas Cowboys, promoters said.
Tyson, who is regarded as one of the greatest heavyweight boxers of all time, said it would be fun to take on Paul, who is 27 and has a 9-1 record with six knockouts.
'Iron Mike', who has a 50-6 record with 44 knockouts, will be hoping to shake off the rust as he will be 58 when the fight takes place at the 80,000 seat arena.
"I'm very much looking forward to stepping into the ring with Jake Paul," Tyson said in a statement.
"He's grown significantly as a boxer over the years, so it will be a lot of fun to see what the will and ambition of a 'kid' can do with the experience and aptitude of a GOAT (Greatest Of All Time).
"It's a full circle moment that will be beyond thrilling to watch, as I started him on his boxing journey on the undercard of my fight with Roy Jones and now I plan to finish him."
Paul was on the undercard in 2020 when Tyson and Jones fought in an exhibition bout that was scored as a draw.
"It's crazy to think that in my second pro fight I went viral for knocking out Nate Robinson on Mike Tyson's undercard," Paul said.
"Now, less than four years later, I'm stepping up to face Tyson myself to see if I have what it takes to beat one of boxing's most notorious fighters and biggest icons."
