A two-time Masters champion, Watson will take part in a made-for-television Skins Game on Governors Island at the end of a tournament that runs from Oct. 19-22.
Watson, who plays on the Champions Tour, will team with actor Dennis Quaid against LPGA players Annika Sorenstam and Natalie Gulbis to play the charity event on Manhattan's only golf course.
'I have played across the world but never imagined that I would have the pleasure of competing in Manhattan,' Watson said Wednesday in a news release. 'What a great honor it is to play in the first-ever professional golf tournament in NYC's history.'
Watson has won eight majors, including the British Open five times. Quaid is rated Hollywood's top player by Golf Digest, while Sorenstam is the top player in women's golf and Gulbis is among the LPGA's young, rising stars.
Governors Island is located 800 yards off the tip of Manhattan, in the middle of New York Harbor.
The island's existing nine-hole golf course -- on nine acres, not the typical 200 acres -- will be reconfigured to 18 holes for the event, and organizers are hoping for about 2,000 spectators.
The 172-acre Governors Island was a military base until 1966, when the Coast Guard turned the land into its northeast headquarters.