Toyota said that they would unveil their first Formula One car at the track, which is also known as Le Castellet, on 23 March.
The track is owned by F1 promotions supremo Bernie Ecclestone and he wants to develop it as a permanent testing circuit.
Track officals said that Toyota's decision will speed up renovation of the circuit.
"The launch of the first grand prix chassis and engine to be made entirely by the world's third largest carmaker will mark the start of a relentless testing programme for the Toyota team," a statement said.
Jones honour
The team, who are based in Cologne in Germany, said they would also test at most grand prix circuits in 2001.
Their drivers for their development season will be Mika Salo of Finland, who will lead the race team when Toyota make their debut in 2002, and British test driver Allan McNish.
"Our initial plan is that Mika will concentrate on the development side of the car and Allan will run the tests to collect data on new circuits," team manager Ange Pasquali said.
"So Mika will be spending more time than Allan at Paul Ricard."
The Australian, who won the world drivers championship with Williams 21 years ago, said: "It's a great honour."
He said he expected to welcome a Ferrari or a McLaren winner at the finish in Melbourne, but hoped that Williams and their new Colombian driver Juan Pablo Montoya could produce a surprise result.
"I've got a feeling that Montoya might outshine his team mate, Ralf Schumacher," he said.
"The Melbourne race has produced a few surprises and who knows what might happen this year?"