The interview follows his conviction in June for a "lewd act" in a Los Angeles public toilet.
The musician was fined £500, told to undergo sex counselling and ordered to do 80 hours community service by a Los Angeles court.
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The star decided that a web chat would be the best way to communicate directly with his fans and answer some of their questions about the affair. The chat will take place at 2000 (GMT).
Michael said: "I'm really looking forward to speaking with my fans for the first time on a one-to-one basis."
The star approached the Microsoft Network (MSN) with his idea for the two-hour chat session. Fans were able to send in their questions in advance by e-mail.
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MSN was inundated with 6,000 e-mails containing 25,000 questions - the majority of which referred to his arrest in April this year and subsequent court case.
The questions have been cut down to about 150 on the most popular topics, which the singer will work his way through during the session.
It is unlikely that George will be able to answer questions sent in live as the huge demand could end up crashing the site.
George Michael has long been interested in technology and has used his own website to distribute music in the past.
The chat session can be accesssed via George Michael's website, Aegean and on MSN.