Kejriwal, who had declared earlier that he would contest against Modi from wherever he is fielded, announced his decision at a rally here after seeking the views of his supporters in his typical style.
"I want to ask you whether I should contest from Varanasi against Narendra Modi. I am ready to accept this challenge," the former Delhi Chief Minister announced after a day-long road show in this constituency of Uttar Pradesh.
Attacking Modi, Kejriwal said that a myth about Modi having developed Gujarat was being perpetuated by a section of media while in reality the BJP leader was gifting away farmers' land to industrialists and followed policies which were against small businessmen.
Kejriwal appealed to people to ensure that Modi loses from Varanasi and Rahul Gandhi gets defeated from Amethi so that both the NDA and the UPA receive a jolt.