Nadal had to pull out of the grass event last year due to a wrist injury but won the title back in 2008, before going on to dethrone Roger Federer at Wimbledon.
“I am very happy to be coming back to Queen’s in June. Winning the title in 2008 is a great memory for me and it is the best way for me to be ready for Wimbledon,” said Nadal.
The 30-year-old Spaniard had an injury-plagued 2016 but was almost back to his best last month as he reached the Australian Open final, before losing a five-set thriller to Federer.
Murray had already committed to Queen’s earlier this month.