Nadal, who is 36, owns a men's-record 22 Grand Slam titles, including two in 2022 at the Australian Open in January and French Open in June, while Alcaraz, 19, claimed his first major trophy at the US Open in September.
The two Spaniards finished 1-2 in this year's ATP rankings: Alcaraz is the youngest man to finish at No. 1, while Nadal is the oldest to finish at No. 2. They're also the first two countrymen to lead the men's rankings since Americans Pete Sampras and Michael Chang in 1996.
The match being touted, boxing-style, as "The Slam: Nadal vs. Alcaraz" will be held inside the MGM Grand Garden Arena.
Tickets go on sale Friday.
Nadal and Alcaraz have played each other three times in official tournaments, all at Masters 1000 events. Nadal leads 2-1, with Alcaraz's victory coming in their most recent meeting, in May on red clay at Madrid.