The project is sponsored by Emilio Botin and the Grupo Santander, which will contribute 1 million euros ($1.3 million) to it over the next four years.
Insitute head Victor Garcia de la Concha said these are crucial years for the consolidation of Spanish as the second language for international communication, which means that even greater efforts must be made.
Garcia de la Concha and Harvard´s president, Drew Gilpin Faust, are scheduled to sign the accord on Friday.
The executive director of the Cervantes Institute at Harvard will be Francisco Moreno, professor at the University of Alcala and ex-director of the Cervantes Institute in Sao Paulo and Chicago.
The new Cervantes will be located in the heart of Harvard at the Faculty of Arts and Sciences.The goal of the center is to become the international point of reference for analyzing the progress of the Spanish language in the United States.
The center will also carry out cultural initiatives, conferences and lectures as well as having the participation of Cervantes Prize winners and Latino writers living in the United States.
By 2050, the United States is predicted to be the leading Spanish-speaking country in the world, ahead of Mexico, with more than 132 million Hispanics, or 30 percent of the population.