Oscars producer Brian Grazer told "Extra" on Friday that the actor will appear on the red carpet as his alter-ego from the film, General Aladeen.
Complete Coverage: The 84th Academy Awards
"We're thrilled to have him and he'll be on the red carpet dressed as 'The Dictator,'" Grazer said.
Grazer also told Access Hollywood that Cohen is participating in the Oscars ceremony - as himself.
"We absolutely respect him as an artist and he's allowed to come," the producer said. "He's coming. In fact, he's even part of the, there's a piece -he's part of the show... as himself."
Reps for the Academy of Motion Picture Arts and Sciences previously made it clear they did not want Cohen - invited to the awards as part of the cast of "Hugo" - to show up in character, but he had not been banned from the ceremony.
Cohen, as Aladeen, released a video message Friday morning threatening the Academy with "unimaginable consequences" if he did not receive his tickets by 12 p.m. on Sunday.
"On top of all this," the character added, "I paid Hilary Swank $2 million to be my date, and she will not refund a penny."
The Academy Awards ceremony kicks off at 7 p.m. ET on ABC. Be sure to come to Celebrity Circuit on Oscar night for red-carpet video and all the details on the winners, the ceremony and the backstage highlights.