Dietrich will be first to have a star laid in her honor on the "Walk" – modelled on Hollywood's own – by festival director Dieter Kosslick and Berlin mayor Klaus Wowereit on Thursday, the ART+COM company said.
The actress, who was born in Germany but later took on US nationality, shot to fame in the 1930 movie "The Blue Angel," featuring her signature tune "Falling In Love Again."
She died in 1992 aged 90.
Dietrich is one of 40 actors, directors, composers and scriptwriters who will be honoured on the "Walk" when it is unveiled in full late this summer near Berlin's film museum on Potsdamer Strasse.
Another 10 stars will be awarded each year to film figures living and dead, all with a link to German culture and all chosen by a five-member jury.
Tipped to feature alongside Dietrich in the initial line-up are directors Fritz Lang, Fatih Akin, Michael Haneke and Wim Wenders, and actors Arnold Schwarzenegger and Romy Schneider.
German director Werner Herzog, president of the jury of the 60th Berlin Film Festival, the first major European cinema showcase of the year which runs February 11-21, could also take a spot.