The Texan outfit will host the reigning Premier League champions in their annual BBVA Dynamo Charities Cup match at BBVA Compass Stadium on May 28.
It is believed that City will have in tow their top-line players including Sergio Aguero, David Silva, Joe Hart and Vincent Kompany, however, Yaya Toure may be absent as his future at the Etihad Stadium remains in doubt.
Dynamo president Chris Canetti was thrilled to welcome City to Houston after generally attracting mid-range clubs for their mid-season friendly.
"We've been working very hard over the last several years to try and land a team that has the stature that Man City has," Canetti told MLSsoccer.com.
"This is going to be a big moment for the club and its fans. We've always said we want to deliver an opponent like this for our club and our fan base.
"It's really important that it's in our stadium. This is who we are. For us to be able to showcase ourselves in that venue versus taking it somewhere else is really special and important."