The event is the first major celebration of 2013 and is being staged in The Venue, a new purpose-built pavilion in the former military barracks in Ebrington Square.
Mayor of Derry Kevin Campbell said it would be one of the highlights of the year.
He said: "The Sons and Daughters concert will allow us to celebrate our excellent musical and cultural talent for which we are so renowned. We are delighted to offer the public the chance to see the city's most-loved musicians and performers come together in their home town for a free concert. This gala event promises to be a great night's entertainment."
Nadine - who is also reuniting with her Girls Aloud bandmates for a tenth anniversary tour - told Twitter followers she was "very excited" about the hometown gig.