The Recording Academy released a statement to E! News announcing that Mother Monster will perform an "experiential" tribute for the late rock star, who will also be receiving a posthumous Lifetime Achievement Award.
"We had already booked Lady Gaga on this year's show, but when David passed—almost in a single moment—we knew we had to change direction," said executive producer of the Grammys, Ken Ehrlich. "We immediately spoke and agreed that she should be the one to honor David. She's perfect for it. So I reached out to Nile [Rodgers] and, before long, we were on our way to creating what we believe will not only make a great Grammy moment, but one befitting of David."
Rodgers, whose relationship with Bowie dates back more than 30 years, will work as the musical director for Gaga's performance. He worked with Bowie on the 1983 hit "Let's Dance," which marked the beginning of a lifelong friendship between the two.
In an interview with the New York Times, Ehrlich explained the performance will not open the show, but it will last six or seven minutes and cover "at least three or four" of Bowie's songs.
He added, that it "is going to be a true homage to who David was, particularly musically, but not ignoring his influence on fashion and pop culture in a broader way."
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Gaga has always proclaimed her infatuation with Bowie, often finding inspiration for her own music and artwork through him.
In fact, in a recent interview conducted before Bowie's passing, Gaga told The Hollywood Reporter: "When I fell in love with David Bowie, when I was living on the Lower East Side, I always felt that his glamour was something he was using to express a message to people that was very healing for their souls."
Meanwhile, Bowie passed away on Jan. 10, just two days after his 69th birthday, after losing his battle against cancer.
His family released a statement on his Facebook page to notify fans: "David Bowie died peacefully today surrounded by his family after a courageous 18 month battle with cancer. While many of you will share in this loss, we ask that you respect the family's privacy during their time of grief."
Bowie is survived by his two children, Duncan Jones and Alexandria "Lexi" Zahra Jones, as well as his wife Iman, whom he married in 1992.
The Grammy Awards will air live on CBS Feb. 15.