Brachie Sprung, a spokeswoman for the Jerusalem municipality, says racers including Aprilia biker Max Biaggi, Ferrari racer Giancarlo Fisichella and stunt motorcyclist Chris Pfeiffer will zoom past the ancient walls of Jerusalem's Old City.
The exhibition, billed as the Jerusalem Peace Road Show, is taking place June 13-14. Up to 100,000 spectators will be allowed to watch the cars along the 2.4 kilometer (1.5 mile) course.
In a statement on Formula One's website, Jerusalem Mayor Nir Barkat says the event is apolitical, and he hopes Jews and Arabs will watch it together. Palestinians have objected to Israeli-organized events near the Old City in the past.