The actor and director will head the jury for the 2012 festival, which takes place from May 16 to 27.
Moretti said: "This is a real joy, an honour and a tremendous responsibility to preside over the jury of the most prestigious festival of cinematography in the world, a festival that is held in a country where film has always been treated with interest and respect.
"As a director, I was always very moved when my films were presented at the Festival de Cannes. I also have very happy memories of my experience as a jury member during the 50th anniversary season, and of the attentiveness and passion that went into the jury's viewing and discussion of all the films."
He added: "As a spectator, fortunately I still have the same curiosity that I had in my youth and so it is a great privilege for me to embark on this voyage into the world of contemporary international film."
Delegate general of the festival Thierry Frémaux added: "The Festival wanted to celebrate its 65th season with a European jury president.
"High-spirited and marked by his modernity and intelligence, Nanni Moretti's films are the incarnation of all the best in cinema over the past 30 years.
"His work is always evolving and continues to carry the promise of film that engages with the world and with our times."
Last year's jury was headed by Robert De Niro. The festival awarded 2011's Palme D'Or to Terrence Malick's The Tree of Life.