Manchester was chosen for the first parade to reflect the contribution made by athletes from across the UK, the government said.
The city has become the hub for Team GB and Paralympics GB's all-conquering cyclists and para-cyclists since the opening of Britain's first indoor Olympic cycling track there in 1994.
Singer Rebecca Ferguson will perform live to the crowds in Albert Square, where the parade will end.
She will be joined by the Kaiser Chiefs, who are late replacements for Olly Murs who had to pull out due to "unforeseen circumstances", Manchester City Council said.
Stars including Jessica Ennis-Hill, Dame Sarah Storey, Max Whitlock, Jade Jones and Nicola Adams are among the athletes attending.
Team GB's Women's Hockey Team will also be there although goalkeeper Maddie Hinch, who saved all four penalties in the shootout in the final against the Netherlands, nearly missed the parade.
Her flight from the Netherlands, where she now plays, was cancelled but luckily three hours later she was on the way.
Paralympians will also be out in force including Jonnie Peacock, Jody Cundy, Ellie Robinson, Ellie Simmonds and Richard Whitehead.
Sue Murphy, deputy leader of Manchester City Council, said: "We couldn't be more thrilled to host the national parade."
She added: "The city has been a medal factory, pumping out golds as the home of British Cycling and British Taekwondo."
Bill Sweeney, chief executive of the British Olympic Association, said: "The British public have a fantastic opportunity to meet their Rio heroes."
Made in Manchester
Many of Team GB's heroes and the Paralympic stars have lived and trained around Greater Manchester.
The velodrome training centre for Team GB's track cycling athletes, who have brought home 11 Olympic medals, is based in the city with many of the team living nearby - including Sir Bradley Wiggins who will be absent from both celebrations
Jason Kenny, now one of Britain's most decorated Olympians, hails from Bolton in Greater Manchester. He married fellow gold-winning cyclist Laura Trott recently.
Their team-mate - team pursuit gold medallist Steve Burke - comes from nearby Colne in Lancashire
Taekwondo star Jade Jones, originally from Flint in north Wales, now lives and trains in Manchester
Rower Matt Langridge, who won gold in Rio with the men's eight, was born in Crewe and grew up in Northwich, Cheshire
Britain's most successful Paralympian - the swimmer turned cyclist - Dame Sarah Storey was born in Eccles and is based in Disley, Cheshire
The procession, which is the city's largest sporting celebration since Manchester United's parade after their Champions' League, Premier League and FA Cup treble in 1999, takes in Deansgate, Huntsbank, Todd Street, Corporation Street, Exchange Square, Cross Street and finally Albert Square, where the finale, starting at 17:30, will also be broadcast on big screens within the city centre.