"It's official. She will contest in Kawhmu Township, Yangon," National League for Democracy (NLD) spokesman Nyan Win said.
Kawhmu is located in the southwestern part of the Yangon region. The area was among those worst hit by Cyclone Nargis in May, 2008 that claimed 138,000 lives in the Rangoon Region and Irrawaddy Delta.
Burma will hold a by-election on April 1, to fill 48 parliamentary seats left vacant when cabinet members assumed their ministerial posts in March, 2011.
The Election Commission last week approved the NLD's application to contest the by-election.
Should she win in the Kawhmu seat, which is deemed likely, Suu Kyi is expected to become the opposition leader in Parliament, making her eligible for appointment to various government committees, government sources said.
"It is possible that Aung San Suu Kyi may head of one of these committees but it depends on her abilities," presidential advisor Nay Zin Latt said.
The April 1 by-election will be the first polls Suu Kyi has participated in.//DPA