The 45-year-old, who has been nominated in two categories - original score and original song - for his work in Danny Boyle's "127 Hours", will team up with British pop singer Florence Welch to perform "If I Rise" from the movie.
The performance is being staged for the best song nominees, and other competitors will be performing too, reports contactmusic.com.
Rahman performed at the Oscars in 2009, when he was nominated for the same categories for "Slumdog Millionaire". He mesmerised the international audience with his song "Jai ho", and even took home two golden statuettes.
This year Mandy Moore and Gwyneth Paltrow will be performing as well.
Moore will team up with actor-director Zachary Levi and composer Alan Menken to perform for the best song nominee "I See the Light" from their animated film
"Tangled", while Paltrow will sing "Coming Home from "Country Strong", and Randy Newman will sing his "Toy Story 3" tune "We Belong Together".
The Academy Awards 2011 are scheduled for Feb 27.