Ellen DeGeneres tweeted the news to her 21 million followers. "It's official: I'm hosting the #Oscars! I'd like to thank @TheAcademy, my wife Portia and, oh dear, there goes the orchestra," she wrote.
When stars and starlets take to the red carpet next March 2, DeGeneres will assume the daunting task of entertaining not only the Hollywood elite at the Dolby Theatre in Los Angeles, but tens of millions of home viewers.
Earlier this year, smart-mouthed comedian Seth MacFarlane held a captive audience of more than 40 million people in his role as host.
Academy Award emcees are often roasted post-ceremony, making the job one of Hollywood's toughest gigs.
"There are few stars today who have Ellen's gift for comedy, with her great warmth and humanity. She is beloved everywhere," said Oscars producers Craig Zadan and Neil Meron in a statement.
DeGeneres, who will be hosting the 86th annual awards this year, last hosted in 2007. She is best-known for her daytime series "The Ellen DeGeneres Show," now in its 10th season and her sitcom "Ellen," which ran from 1994 to 1998.
Among a spate of accolades, DeGeneres received a Peabody Award and Emmy for the "Ellen" episode in when her character came out as a gay woman to 46 million viewers.
In recent years DeGeneres has branched into film, staring as the voice of Dory the fish in Pixar's animated feature "Finding Nemo" and in its sequel "Finding Dory" which is slated for release in 2015.
"I am so excited to be hosting the Oscars for the second time. You know what they say - the third time's the charm," DeGeneres said in a statement.