The Rose Bowl Stadium in Pasadena, which has a capacity of over 90,000, hosted the 1994 men's and 1999 women's World Cup finals and was the Galaxy's home between 1996 and 2002.
The Galaxy, which will officially be the host team for the game, currently play their home games at Dignity Health Sports Park.
"The LA Galaxy are excited to write a new chapter in the storied soccer legacy of Los Angeles as we kick off our 2023 campaign against our intercity rival LAFC at the iconic Rose Bowl Stadium," LA Galaxy president Chris Klein said.
"We have a great history at the most legendary sports venue in the United States and know this will be a great spectacle for fans as we place one of the most exciting new rivalries in the world on LA's biggest stage."
The LA Galaxy and LAFC matchup, nicknamed El Trafico, has become one of MLS' highest-profile rivalries since LAFC joined the league in 2018.
"This rivalry has, from day one, delivered an energy and electricity that together with incredible moments and memories on the pitch, has established it among the most engaging not only in Los Angeles but across MLS," LAFC co-president & CBO Larry Freedman said.
"It is only fitting that we are now taking it to one of the most iconic venues in all of sports."
LAFC are currently leading the Western Conference standings with two games of the regular season remaining, while the Galaxy are fifth and battling to make the playoffs.