The Sky Blues will take on Paris St Germain, Ajax and Sporting Lisbon in the 2018 Future Cup.
The Future Cup is a prestigious, invitational U/17 academy competition organised by AFC Ajax, which Sydney will become the first Australian side to take part in.
Manchester United, Bayern Munich and Barcelona have all competed for the title in recent times, while Juventus and Sevilla may await Sydney in the knock-out stages this year.
Following a friendly with Dutch club NEC Nijmegen, Sydney's kick off their campaign against Ajax, followed by Sporting Lisbon before the semi-final stage begins.
The tournament will be hosted at Ajax's training ground, Sportcomplex De Toekomst.
Sydney CEO, Danny Townsend, says the club's participation will help it form ties to the European giants.
“To be the first Australian Academy side to be invited to play in such a prestigious youth tournament is a great recognition for Sydney FC and it shows the high esteem with which our Academy is now held globally,” he said.
“To see Sydney FC going head to head with the likes of PSG, Juventus and Ajax is fantastic and it shows how far we have come in the two years since our Academy’s foundation.
“Our participation will go a long way to helping us forge even greater links with European football clubs and further establish Sydney FC on the world football map.”