Football Federation Australia (FFA) confirmed the rumoured friendly in a statement released on Wednesday.
Joachim Low's men will host the friendly at Fritz-Walter-Stadion in Kaiserslautern on March 25.
It will mark an important game in the Socceroos' preparations for their 2018 World Cup qualifiers.
"Germany are the world champions and have many exceptional players, so it's a privilege for the Socceroos to face the best on their turf," Australia coach Ange Postecoglou said.
"They are number one because of what they have built in junior development and elite academies over the past 15 years and there are many lessons we can learn from their approach.
"The match in Kaiserslautern is the ideal way to prepare for what will be a very tough World Cup qualification campaign in Asia."
For Germany, who have won three of the previous four meetings between the teams, it comes four days before they face Georgia in a Euro 2016 qualifier.
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