The romantic comedy, which stars Owen Wilson, Rachel McAdams, Marion Cotillard and a cameo from France's first lady Carla Bruni-Sarkozy, will be the focus film of the opening night at the French festival on May 11.
It will premiere at the Lumiere theatre and will also be released in France on the same day.
Festival director Thierry Fremaux said the movie was chosen because it is a "love letter" to the French capital.
"'Midnight in Paris' is a wonderful love letter to Paris. It's a film in which Woody Allen takes a deeper look at the issues raised in his last films; our relationship with history, art, pleasure and life. His 41st feature reveals once again his inspiration," contactmusic.com quoted Fremaux as saying.
Allen previously revealed the movie would be a celebration of Paris.
"The film celebrates a young man's great love for Paris, and simultaneously explores the illusion people have that a life different from their own is better," Allen said in a statement.
The festival will end May 22.