McGrath said he was delighted to be inducted and will fly from India to attend the ceremony in Melbourne.
"I grew up in the country, watching and loving cricket from a young age, and the thought of playing for Australia was a dream. To achieve that, to be lucky enough to play for as long as I did and now to be inducted in the Hall of Fame, is a huge honour," McGrath said.
"To be featured alongside some of my heroes growing up - guys like Dennis Lillee, Rod Marsh and the Chappells - is pretty amazing, too."
Fellow inductee Charlie Turner may have played centuries before McGrath, but the pair share plenty of similarities.
"I am proud to be inducted alongside Charlie Turner. I didn't know a great deal about him, but when I found out that we were being inducted together, I did a bit of homework," McGrath said.
"Like me, he was a country boy, born in Bathurst not far from where I grew up. His statistics indicate he was a remarkable bowler - there's no doubt about that."
Like McGrath, Turner possessed a rhythmic run and a square-on action at the point of delivery and was described in his obituary in Wisden as 'a bowler ranking with the best ever produced by Australia, and by many who played against him'.
Turner took six for 15 on Test debut at Sydney in 1887, helping dismiss England for 45, which remains the lowest total by England against Australia.
In a 14-year Test career spanning 124 matches, McGrath's 563 wickets at 21.64 is the highest tally by a fast bowler and fourth highest of all-time, behind Shane Warne, Muttiah Muralitharan and Anil Kumble.