Part of the street, currently called Werner Heisenberg Allee, which runs alongside the stadium in the north of the city will be renamed Franz Beckenbauer Platz.
The change means the stadium, which is set to host the Champions League final in May 2025, will officially be situated at Franz Beckenbauer Platz 5 - the midfielder's shirt number.
Beckenbauer, nicknamed 'Der Kaiser' for his dominant style on the field, was one of the greatest players of all time.
He died in January aged 78 and the Munich City Council announced the change will take effect on the first anniversary of his death, on January 7, 2025.
"Naming a street is the highest honour that the city of Munich can bestow posthumously and a sign of the deep respect and appreciation that we have for Franz Beckenbauer," mayor Dieter Reiter said in a statement.
Beckenbauer won the World Cup both as a player and coach, along with the Euros and the Ballon d'Or. During 13 years with Bayern, the Munich-born midfielder won three European Cups and four German league titles, winning another with Hamburg in 1981-82.
Reiter called Beckenbauer "one of the greatest athletes our city has ever produced."
"With his sporting successes and his commitment to football, he has left a lasting mark on Germany's sporting landscape. His calm, humorous manner and his way of expressing himself will forever remain part of the Munich attitude to life," he said.
Beckenbauer is also set to be honoured with a statue outside the stadium alongside that of fellow Bayern and Germany teammate Gerd Mueller.
