Garcia Marquez was a longtime friend of former leader Fidel Castro and also a major backer of Cuba's marquee international cinema bash.
Festival official Ivan Giroud says Garcia Marquez's widow and children had been told of the decision to honor the Colombian writer affectionately known as "Gabo."
Cuban state news agency Prensa Latina reported the announcement Tuesday.
Garcia Marquez died last week in Mexico City.
Havana's film festival takes place each December.