The band will appear at the Britpop festival alongside the likes of The Bluetones, Space and Dodgy.
The Chasing Rainbows five-piece will be joined by Cast on their "Shedcember" tour.
Shed Seven have announced they will be releasing their first studio album in 16 years.
Announcing the news on Twitter, the Britpop legends wrote: "We are excited to announce that we are releasing our first studio album in 16 years to coincide with our biggest UK tour ever. #Shedcember".
Frontman Rick Witter said of the announcement: "We’ve spent the last couple of years writing and demo-ing secretly and have more than an album's worth of material that we can’t wait to share with you.
"We feel now is the right time. We're looking forward to 'Shedcember' where it will be business as usual, you’ll get to hear all the songs you rightly should expect to hear but this time with a light sprinkling of new music to top it all off."
The Chasing Rainbows band will tour with fellow '90s act, Cast, who will join them on dates throughout December.
Tickets go on sale from Friday 24 February 2017.
Photo: Twitter/Shed Seven