The show, which will take place at Cafe Brasil in New Orleans next month, will be aired on HBO, reported Variety.
The original show, written for off-Broadway in 1987, tells Holiday's life story through the songs that made her famous, including 'God Bless the Child', 'What a Little Moonlight Can Do', 'Strange Fruit' and 'Taint Nobody's Biz-ness'.
"Playing Billie Holiday in 'Lady Day at Emerson's Bar and Grill' on Broadway was one of the most challenging and artistically rewarding experiences of my career," McDonald said in the announcement.