The open-air gig on 12 August is part the London Live series of events to celebrate the Olympics, which are organised by Live Nation.
The appearance will be Blur’s only major live performance in 2012, after the group reformed with a set at Glastonbury in 2009. Blur will be joined by British acts The Specials and New Order with more acts announced soon. Alongside the performance, huge screens will show highlights of the closing ceremony from the Olympic Park.
Another celebration concert will mark the Olympic opening ceremony on 27 July, while Hyde Park and the other two London Live sites at Victoria Park and Trafalgar Square will offer will offer free sports screenings throughout the Games as well as live music and the chance to try our different sports.
It has also been announced that BT will sponsor London Live, with BT customers receiving priority access to tickets for the opening and closing ceremony concerts.
The news comes as Live Nation said it was "delighted" that a Westminster Council ruling would not reduce sound restrictions for concerts in Hyde Park.
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