The match at Stadio Renzo Barbera on 9th August will determine the first winners of the Anglo Palermitan Trophy, a newly-created competition marking Palermo's 125th anniversary celebrations.
City Football Group acquired the Italian outfit in 2022, making them the 11th club in the network. Palermo currently compete in Serie B following their promotion and have appointed Filippo Inzaghi as head coach. The former AC Milan striker takes charge just as his brother Simone manages Al Hilal.
The trophy's name pays homage to Palermo's inaugural match in 1900, when they faced a team of British sailors. City's involvement fits naturally given their shared ownership structure, having previously met other CFG clubs including Melbourne City, Yokohama F. Marinos and Girona.
Former City academy graduate Claudio Gomes remains on Palermo's books, adding a personal connection to proceedings.
City's pre-season schedule appears unusually light following their disappointing Club World Cup campaign. The squad spent three weeks in America, playing four matches before Al Hilal dumped them out at the round of 16 stage.
Unless a further friendly is hastily arranged, the 8pm kick-off in Sicily represents City's final preparation before facing Wolves at Molineux, giving Guardiola one last chance to assess his squad's readiness for the new Premier League season.