Six contestants will be chosen in both categories based on videos submitted through Instagram. Submissions end on August 6, with the competition being held in New York City on September 7 at Brooklyn Steel.
The competition will be judged by a panel of industry titans made up of Diplo, Just Blaze, Mannie Fresh, Mija, Craze, The Whooligan, and Destructo. Dave East will be hosting the competition.
The winner of the DJ battle will get to perform at Fool's Gold Day Off, and the winner of the beat battle will get a song released on Fool's Gold.
Watch the entire announcement video above.
Thumbnail image via Jesse Grant/Getty Images.