Organizers say it would be called the Universal Hip Hop Museum.
Afrika Bambaataa says the museum would look at the historical and cultural roots of hip-hop and the contributions made by break dancers and disc jockeys.
Bambaataa is frequently called the father of hip-hop. He would serve as the museum's chairman.
The museum hopes to open in 2017 inside the Kingsbridge Armory, which is being redeveloped into a national ice sports center. The plan was announced at a news conference on Wednesday.
Bambaataa says many people think of rappers when they hear the word hip-hop. But he says there's a whole culture and movement behind it.