The Oscar winner will receive the Ischia Legend Award, according to The Hollywood Reporter.
Previous honourees include Dennis Hopper, Sir Ben Kingsley, Vanessa Redgrave, Hilary Swank and Stefania Sandrelli.
The 61-year-old won the Oscar for 'Best Actor in a Leading Role' in 1991 for his work in Reversal of Fortune. He also won a Golden Globe for the same performance.
The festival opens on July 11 in Italy.
