The 76-year-old revealed earlier this year that he has been told he has a year to live, in a “best-case scenario”, after being diagnosed with pancreatic cancer.
While discussing his illness, Eriksson stated that he had always dreamed of managing boyhood club Liverpool - which he will now do in March’s Legends game against Ajax at Anfield.
A club statement read: "The former England boss will join a dugout of LFC greats, including Ian Rush, John Barnes and John Aldridge, for the annual LFC Foundation charity match.
"All connected with the club and LFC Foundation look forward to warmly welcoming LFC fan Sven and his family to Anfield - and seeing him in the dugout on the day - for a fantastic fundraising occasion."
We are delighted to confirm Sven-Goran Eriksson will be part of the #LFCLegends management team for the game against Ajax Legends at Anfield 🔴
More info: https://t.co/qzBKmm4Htd pic.twitter.com/xsWr4KYUKf
— Liverpool FC (@LFC) February 13, 2024
Liverpool's squad will include the likes of Jerzy Dudek and Sander Westerveld, Martin Skrtel, Fabio Aurelio, Gregory Vignal and Djibril Cisse, while former Reds and Ajax forward Ryan Babel will feature for both sides.
LFC Foundation's two previous 'Legends' matches against Manchester United and Celtic raised £1.45million in total for the club's charity and its partners, Liverpool said.
Reds boss Jurgen Klopp, speaking shortly after Eriksson went public with his diagnosis, opened the door for the Swede to spend the day as Liverpool manager.
"I don't know him, unfortunately not," the German said. "I know him without knowing him, we never met.
"Yes, it was obviously very touching news when you heard about it. I heard for the first time about his admiration or love for Liverpool and that he was a fan for his whole life.
"Absolutely he's very welcome to come here and he can sit in my seat in my office and do my job for a day if he wants. That's no problem.
"Being on the sideline might be a little bit more difficult. To have him here and show him everything and how this wonderful club developed over the years, I think that's definitely something we will tell him.
"He can come over and have a few wonderful hours here, I'm sure."
Additional reporting by PA