The Raptors will make the announcement Monday at the Air Canada Centre, according to multiple media reports.
It will be the first time the Raptors have hosted the event, which will mark the franchise's 20th season.
Among the people attending the announcement are Raptors general manager Masai Ujiri, NBA deputy commissioner Adam Silver, Mayor Rob Ford and Toronto rapper Drake.
The 2014 all-star game will take place in New Orleans, while New York will host the 2015 installment.
The last time Toronto hosted an all-star game was for the National Lacrosse League in 2006. The NHL all stars came to Toronto in 2000, and the Blue Jays hosted baseball's event in 1991.