The popular American songstress revealed the exciting news after teasing fans all week.

She made the announcement through her fan base known as the Little Monsters, who told the world the news via a huge banner in Times Square that read 'GAGA TO OPEN VMAs!!!'

'I have a really big announcement, but I thought as usual, instead of me announcing it, I’d let the Little Monsters do it for me,' she told MTV's Sway, before gushing about the coveted opportunity.

'It means the world to me. I just feel really blessed every day. I have the most amazing fans.'

Gaga is also nominated for four awards at the prestigious music event including Best Female Video (Born This Way), Best Art Direction (Judas), Best Choreography (Judas) and Best Video with a Message (Born This Way).

The 2011 Video Music Awards will air on Sunday August 28.

It was a busy night for the star, as her full-length VMA promo was also unveiled, while her Yoü And I video also made its television premiere.

The star revealed the concept behind her song’s accompanying video.

'I wrote the song about this guy that I used to date,' she revealed. 'But the song is about going back to anyone or anything in your life that means something to you.'

Meanwhile, fellow pop star Joss Stone revealed she doesn’t approve of Gaga’s eccentric attire. The British songstress insists Gaga’s love of outrageous garb overshadows her musical talent.

'I know the shock value is good and gets people to watch you, but actually [Gaga] can sing songs and she can play piano and it just feels like [her look] might overshadow what talent she does have,' she told CYInterview.