The fight, dubbed a "blockbuster boxing showdown," will be streamed live on Netflix and held at the AT&T Stadium in Arlington, Texas.
The matchup - being promoted by Paul's MVP company - pits two vastly different fighters against each other.
Paul, 27, boasts a professional boxing record of 9 wins and one loss (coming against Tommy Fury), having started his professional career with victories over fellow YouTuber AnEsonGib and former NBA star Nate Robinson.
Meanwhile, Tyson, 57, is a retired boxing legend and former undisputed heavyweight champion, known for his ferocious fighting style and devastating knockout power.
Details surrounding the fight are still emerging, with the event's status (professional fight or exhibition) yet to be confirmed.
Despite the age gap and contrasting experience levels, both fighters expressed excitement and confidence ahead of the clash.
"I could not be more excited to make this amazing fight available to all Netflix subscribers alongside the hardest hitter of all time, Mike Tyson, on Saturday, July 20th" said Paul after the announcement.
"My sights are set on becoming a world champion, and now I have a chance to prove myself against the greatest heavyweight champion ever, the baddest man on the planet and the most dangerous boxer of all time.
"This will be the fight of a lifetime."
Tyson said he looks forward to "finishing" Paul, stating, "it will be a lot of fun to see what the will and ambition of a "kid" can do with the experience and aptitude of a GOAT.
"I'm very much looking forward to stepping into the ring with Jake Paul. He's grown significantly as a boxer over the years.
"It's a full circle moment that will be beyond thrilling to watch. I started him on his boxing journey on the undercard of my fight with Roy Jones and now I plan to finish him."
