"I started in Vegas at Caesars, so I've come full circle," she said. "I'm back, and I plan to give my fans the best experience yet. I think everybody knows I only do things in a big way."
The Oscar, Emmy and Grammy award winner said in a statement that she will begin a three-year, 200-show engagement May 6.
"Cher's name in one word encapsulates icon, award-winning legend, and captivating performer," said Caesars Palace President Gary Selesner. "Caesars is pleased to welcome Cher back."
"Cher at The Colosseum" is scheduled to include hit songs from her career of more than 40 years, with choreography, costumes and special effects. It is a partnership with AEG Live.
Cher will alternate performances at the 4,300-seat Colosseum with other headline acts Elton John and Bette Midler.
In December, Celine Dion ended a five-year run at the theater, which opened in 2002 as home of her show, "A New Day ...".
John, who began playing at the Colosseum in 2004 when Dion's show was dark, is now booked to play his show, "The Red Piano," through 2008. Midler's "The Showgirl Must Go On" is set to open Feb. 20 for a two-year run of 100 shows per year.
Cher's 90-minute show will feature choreography from Doriana Sanchez and lighting, special effects and costumes by Bob Mackie. Engagements will run four nights a week on Tuesday, Wednesday, Saturday and Sunday. Ticket prices are from $95 to $250.
