The teams meet next at the iconic city-centre venue on Wednesday, 2 May for the fixture which attracted a record 14,000 rugby fans to the first Millennium Stadium Varsity match last season.
Roger Lewis, Group Chief Executive of the Welsh Rugby Union, which owns and operates the Millennium Stadium, said: "Last year's game was a delight to behold - fast flowing entertaining rugby. It was a great evening's feast of rugby. This Welsh Varsity fixture undoubtedly will feature some of our future club players, coaches and match officials and it is fitting that the match will be played at the home of Welsh sport for the foreseeable future.
"The event attracted a record crowd to the Millennium Stadium last season and I'm sure that the organisers will be pulling out all the stops to make the upcoming events bigger and better, not only for the students and alumni, but all fans of rugby in Wales. I am delighted that the WRU continues to support Welsh student rugby."
The event has also attracted a broadcast deal with S4C for the free-to-air media rights of the May fixture, after a total of 132,000 individuals across the UK tuned into last year's Varsity coverage on S4C.
S4C's Director of Commissioning, Geraint Rowlands said: "We are delighted to be broadcasting the Welsh Varsity match live this year for the second time. The fixture has certainly captured the imagination of or viewers and reflects our commitment to broadcasting rugby."
Welsh Varsity has grown year on year since it began it 1997 and matches were held alternatively at Cardiff Arms Park and Swansea's St Helens. The match has been played on neutral ground since 2003, at Bridgend's Brewery Field and Swansea's Liberty Stadium, before the inaugural Millennium Stadium clash last season.
With four months to go until the big day in the city centre, Welsh Varsity organisers are expecting tickets, priced at £10, to be snapped up quickly by students, alumni and rugby fans.
A spokesperson for the Welsh Varsity teams said: "The atmosphere in the Millennium Stadium during the 2011 Varsity match was electric. There's a healthy rivalry between Cardiff University and Swansea University, and students relish the opportunity to see their peers take to the field in such a prestigious venue. "