On Monday officials confirmed that Nadal would be playing in their clay court event.
Former Wimbledon winner and Hamburg tournament director Michael Stich finally tied up the deal with the Spaniard, whom he has been chasing for some time, and is reportedly paying Nadal around 500,000 Euros in appearance fees.
Stich told media that he hoped gate takings would help to cover expenses in getting a big name like Nadal to play in the 500 level tournament.
"We are thrilled that the best clay court player of all time will play. Of course there is some financial risk, but players like Nadal are magnets for spectators," he said.
In 2008, Nadal won the Hamburg title when he beat Roger Federer in the final.
This will be Nadal’s first ATP Tour match since losing at Wimbledon against Germany’s Dustin Brown in the second round.