"McGrath becomes the 68th male member of the Hall of Fame and joins fellow 2012-13 inductees West Indian Brian Lara and England's Enid Bakewell in being recognized by the ICC and the living members of the Hall of Fame."
While Lara and Bakewell were inducted in September at the ICC Awards, McGrath will be inducted at his home ground of the SCG. A fourth and final inductee of 2012-13 will be announced next summer.
McGrath represented Australia in 124 Test matches between 1993 and 2007 and claimed 563 Test wickets at an average of 21.64. He took more Test wickets than any other seam bowler currently in the game or retired.
He also represented Australia in 250 ODIs, claiming 381 wickets at an average of 22.02, and was part of the Australian side that won three successive World Cups -- 1999, 2003 and 2007.
He still holds the record for most wickets in World Cup competitions, with 71 scalps and his figures of 7-15 against Namibia are the best in the competition's history.
"I am honoured that the ICC Cricket Hall of Fame voting academy, which includes all the current living Hall of Famers, have nominated and voted me to be inducted into the Hall of Fame," McGrath said of the induction.
"I am very much looking forward to celebrating the occasion on 4 January with not only my friends and family, but all those at the SCG which is of course is like a second home to me," he added.