The outlet as well as its logistics centre will be located in Fengdong New Town in Xi'an, official media here reported.
IKEA has opened 11 stores in 10 Chinese cities, and two other outlets are scheduled to open in Ningbo and Shanghai in July and August, respectively.
"We will sign an agreement with IKEA in early July to establish unit in Xi'an, and preliminary work for the program is underway," said Yao Haijun, deputy director of the Fengdong New Town's management committee.