The 37-year-old Klitschko eased to a sixth round stoppage win over Italy's Francesco Pianeta in Mannheim last month and had indicated his desire to take on the unbeaten Russian.
Povetkin, like Klitschko a former Olympic champion, boasts a record of 18 stoppage wins in 26 fights and is the current holder of the WBA's 'regular' heavyweight title.
Povetkin won the vacant title with a points win over Ruslan Chagaev in August 2011 and has made four subsequent defences, including a third round win over Andrzej Wawrzyk in Russia in May.
Despite dominating the heavyweight division alongside his brother
for the best part of a decade, Klitschko has received some criticism for the perceived lack of quality of his opponents.
Klitschko is the current holder of the WBA and WBO 'super' titles and the IBF and IBO regular titles.
In a statement, Klitschko said: "I'm very happy that this fight is finally made. The fans around the world are looking forward to this extravaganza between two Olympic champions.
"This is the best fight in the heavyweight division and I'm thrilled that it will be staged in Moscow where many Russian and Ukrainian fans have a chance to fill the arena. The atmosphere is going to be thrilling."