The “Born in the USA” singer will appear on Celebrating America, a televised event taking place after Biden is sworn into office next Wednesday (20 January).
They join previously announced musical guests Justin Timberlake, Jon Bon Jovi, Demi Lovato and Ant Clemons.
Meanwhile, actors Eva Longoria and Kerry Washington will also make appearances during the 90-minute event.
The prime-time special will be shown on major TV networks, as well as being streamed live on social media and streaming services.
Springsteen’s announcement follows the news that Lady Gaga will sing the US national anthem during Biden’s inauguration ceremony, with Jennifer Lopez also due to perform.
The swearing-in event will also see firefighter Andrea Hall lead the Pledge of Allegiance, as well as 22-year-old Amanda Gorman, the first-ever National Youth Poet Laureate, recite a poem.
Father Leo J O’Donovan – a long-time friend of the Biden family and former Georgetown University president – will deliver the invocation, while Reverend Dr Silvester Beaman will give the benediction.