Farah, Olympic 5,000m and 10,000m champion, finished fourth in the 3,000m at the world indoor championships in Istanbul last March having twice won European indoor championship gold over the distance.
"I always love running in Birmingham and have fond memories of celebrating my Olympic success with the British fans at Alexander Stadium last August," Farah said in a statement.
"I always run well at the National Indoor Arena. I won this meet in 2007, 2009 and 2011 and that's what I'll be aiming to do for next month."
Looking ahead to the defence of his world outdoor 5,000m title in Moscow August, Farah believes that competing in Birmingham is an important part of his preparations.
"The big focus this year is the world championships. I've had a good winter training block and the British Athletics Grand Prix will be the first time that I compete this year, so I'm looking forward to getting back on the track in front of a home crowd."