Block and his Hoonigan Racing Division had already signed up for April's International Rally of Whangarei (April 17 to 19) and the addition of his South Island appearance has thrilled Otago Rally promotions manager Roger Oakley.
''We are delighted that Ken has chosen New Zealand and the Otago Rally to include in his programme this year,'' Oakley said.
''He has competed all around the world and this is an expression of confidence in the Kiwi welcome and the quality of our events.''
Oakley said American driver Block had a massive online following, so his presence in Otago would be ''good for the profile of our region''.
The rally's 16 special stages and the service parks will provide opportunities to see Block both in action and in the flesh.
Block and regular co-driver Alex Gelsomino will contest both New Zealand Rally Championship events in their Hoonigan Racing Division Ford Fiesta, the car they use in the American Rally Championship.
With only three weeks between the Whangarei and Otago rallies, the timing provided Block the perfect opportunity to contest two events on stages he loves to rally.
Block expressed his excitement on his blog.
''I'm getting to do some fun stage rally events this season, with two in America and two down in New Zealand on some of the greatest roads on the planet,'' Block wrote.
''While rallycross is more of my focus these days, I come from stage rally, so to be able to still do a few events for fun each year is hugely important to me.''
Block and Gelsomino previously contested the Otago Rally in 2007, driving a Subaru Impreza WRX.
They were running in 10th place, before going off the road on a tricky corner in the Akatore Forest, south of Dunedin.
The pair most recently visited New Zealand for the 2012 Rally New Zealand World Rally Championship event and finished ninth overall in a Ford Fiesta World Rally Car.
Block is one of the most prominent competitors in motorsport with more than 5.5 million followers on social media due to his exploits in the WRC and Global Rallycross series, along with his successful Gymkhana series of online driving videos, which have attracted over 300 million views.
Norman Oakley, the Otago Rally clerk of course, said Block contesting the rally was a ''real coup'' for the event.
''It's a real thrill to have him enter the Otago Rally, and I'm sure there'll be many, many fans at the event who will jump at the chance to meet someone that they have only ever seen on their computer screens, in the Gymkhana series,'' he said.
