It will coincide with World Aquatics Gala and Award Dinner "Soirée des Etoiles” due to be held in the Hungarian capital on the same day. 

A press conference will take place earlier in the day to confirm who has been selected to stage both events following the first meeting in 2016 of the ruling FINA Bureau.

Last June, FINA confirmed it had received expressions of interest from seven countries for the Championships, including Argentina and Turkey, neither of which have hosted the event before.

Melbourne, hosts in 2007, is one of two Australian cities interested along with Sydney, while Wuhan and Nanjing, which staged the 2014 Summer Youth Olympic Games, are in the mix for China.

Doha, which hosted the World Short-Course Championships in December 2014, is also interested in staging the event. 

There are “two potential” unnamed cities from Germany, according to world swimming’s governing body, as well as interest from Japan.

Australia has hosted the Championships three times, in 1991, 1998 and 2007.

Germany, Japan and China were the organisers in 1978, 2001 and 2011 respectively.

FINA had hoped to name the hosts of the 2021 and 2023 World Championships by the end of 2015.

Budapest had originally been selected for the 2021 competition, but its hosting was brought forward to 2017 after Mexican city Guadalajara pulled out last February due to falling oil prices.

Gwangju, the South Korean city which hosted last year's Summer Universiade, is due to host the 2019 edition of the biennial event.

Following the press conference, the FINA Best Athletes of the Year will be announced at the Gala and dinner.

The second edition of the event, following the inaugural Gala which took place in Qatar in 2014, is scheduled to be held at the InterContinental Hotel, which overlooks the Danube River.

FINA say Budapest, which is bidding for the 2024 Olympic and Paralympic Games, was a “natural choice” as the Hungarian capital will stage the World Championships and World Masters Championships in 2017.

One man and one woman will be rewarded in swimming, diving, high diving, water polo and open water swimming, while one winner will be revealed in synchronised swimming.

The award winners will be chosen through a selection process which takes into account points collected at FINA events throughout the year as well as the world rankings.

"As the athletes are at the core of our activities, it is our great pleasure and honour to reward the greatest aquatic champions of 2015," FINA President Julio Maglione said.

"The Gala Dinner and the Award ceremony is a way to pay tribute to their constant efforts and outstanding performances throughout the year."

Previous recipients include South African Chad Le Clos, Olympic champion in the 200 metres butterfly event, winner of the men’s swimming award in 2014.

Hungarian Katinka Hosszú scooped the women’s swimming prize in the same year after winning four golds at the World Short-Course Championships.