Paisley-born singer Nutini will be the top act for the Concert in the Gardens, his only festival performance in 2016, while the indie favourites will headline the Waverley Stage.
The event is estimated to be worth more than Â£40m to the economy.
Increased stewarding and security will mean higher prices for some events including the Torchlight procession.
Nutini said: "When they offered us the gig, I was made up, as it was 10 years ago that we had shown up at the castle, lined up to play alongside the Pet Shop Boys and unfortunately it was a washout ... forcing the powers-that-be to cancel.
"We went back as a three-piece in '08 to play a small set before legging it to Glasgow for George Square, but this now gives us a chance to make up for lost gigs.
"We had no plans for any shows this year after Wales but this was the only one that, over the years, I hoped that we would get another shot at.
"Edinburgh is electric at that time of year and I'm glad we get a chance to be a part of it."
Charlatans singer Tim Burgess, said: "Nowhere in the world sees in the New Year like Scotland.
"I've been to Edinburgh before for Hogmanay and it's always brilliant. Looking forward to another big night."
About 75,000 revellers are expected to attend the celebrations in Edinburgh city centre, with entertainment across seven open-air stages.
The Castle Stage will feature Scottish music from artists including Salsa Celtica , Manran and Ross Ainslie, Ali Hutton and Friends.
The Frederick Stage will have DJs, dancers and performers from Guilty Pleasures while the Mound Stage will showcase jazz performers including James Brown is Annie, Brass Gumbo and Blues n Trouble.
A candlelit concert will also take place in St Giles' Cathedral and the record-breaking Old Town Ceilidh will return to Parliament Square.
The event will be rounded off with a fireworks display from the ramparts of Edinburgh Castle.
Edinburgh's Hogmanay, described as the UK's largest outdoor winter music festival, has been produced by Unique Events on behalf of the City of Edinburgh Council since 1993.
It is expected to bring in 150,000 visitors from more than 80 countries across three days of celebrations, giving the city an estimated Â£40m boost.
Other events confirmed include the annual torchlight procession on 30 December, the "Loony Dook" dip in the Forth at South Queensferry, the Scot:Lands festival of music, art and theatre on 1 January and the Final Fling closing ceilidh, also on New Year's Day.
Penny Dougherty, director of Edinburgh's Hogmanay, said "Edinburgh's Hogmanay's place alongside the New Year celebrations of the world's leading cities proves that Edinburgh continues to punch above its weight and that Scotland is the home of hogmanay.
"As the world's leading festival city and on the back of two sell-out years, we are looking forward to another exhilarating three days of hogmanay celebrations."
Paolo Nutini and The Charlatans have been announced as the headline acts for Edinburgh's Hogmanay celebrations.