Downing Street and the White House made the announcement just a day after reports Mr Trump would snub the PM at the gathering.
White House Press Secretary Sarah Huckabee Sanders said that the meeting would "strengthen the US-UK Special relationship".
“President Trump looks forward to having a bilateral meeting with UK Prime Minister May in Davos next week to further strengthen the US–UK Special Relationship," she said. "Other details on the President’s schedule at Davos will be announced next week.”
He will be the first sitting US president to attend the summit in person since Bill Clinton in 2000.
It is thought likely that he will use his appearance to promote his America First strategy, even though the event is associated with the rise of globalisation.
The event takes place at the upmarket ski-resort Davos between January 23 and 26, In addition to Mr Trump and Ms May, Canadian Prime Minister Justin Trudeau, Indian Prime Minister Narendra Modi and French President Emmanuel Macron are among the other world leaders scheduled to attend, as well as a number of top business leaders.
The meeting comes in the wake of Mr Trump cancelling a planned visit to open the new American embassy in London next month.
Blaming decisions made by his predecessor Barack Obama, the current president made clear that he thought the decision to move the US embassy from Grosvenor Square in the famous Mayfair district of central London to Nine Elms, in South West London - what he called an "off location" was a "bad deal".
Mr Trump tweeted last week: "Reason I cancelled my trip to London is that I am not a big fan of the Obama Administration having sold perhaps the best located and finest embassy in London for 'peanuts', only to build a new one in an off location for 1.2 billion dollars. Bad deal. Wanted me to cut ribbon-NO!"
While the deal on the sale of the old embassy site was concluded under Mr Obama, the decision to move was agreed in 2008 under Republican President George W Bush.
Ms May was the first foreign leader to visit Mr Trump at the White House, after his inauguration in January 2017 and the pair have since met at both the G7 summit in Sicily in May and at the G20 summit in Hamburg in July.
However, the Prime Minister criticised Mr Trump for retweeting inflammatory videos posted online by the far-right group, Britain First in November.
Her spokesman said at the time it was "wrong for the president to have done this".
Mr Trump responded on Twitter, telling the Prime Minister not "focus on me, focus on the destructive radical Islamic terrorism that is taking place within the United Kingdom".