MLS Commissioner Don Garber, Portland Timbers owner Merritt Paulson and Portland Mayor Charlie Hales announced the event at Jeld-Wen Field on Wednesday.
In recent years, the MLS All-Stars have played premier international teams in the annual match. This year's All-Stars are set to play AS Roma on July 31 in Kansas City.
The MLS opponent for the match in Portland will be announced at a later date.
The Portland Timbers are known for their fervent supporters and the team has sold out 42 straight MLS matches at its downtown stadium.
Jeld-Wen hosted opening round matches of the CONCACAF Gold Cup this week, including a 6-1 victory by the U.S. men's national team against Belize.