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Premier Soccer League CEO, Kjetil Siem, confirmed this shortly after the Soweto derby final-four tie between Orlando Pirates and Kaizer Chiefs on Easter Monday.
Amakhosi won the encounter 3-0 on penalties to book their place in the competition's climax.
The league is set to confirm the date of the final, which will either be Saturday 10 April or Sunday 11 April, on Tuesday.
"We explored all our options before coming up with this venue," said Siem.
"We would've loved to have taken the final to a World Cup venue, but due to maintenance on the pitches, this was proving to be a challenge.
"Nevertheless, Durban have always proven to be good hosts and we expect a great final."
Telkom Sponsorship manager, Nakedi Chiloane commented: "We are delighted that the 2010 Telkom Knockout has delivered such special moments, and that the finalists are worthy contenders for the title.
"Furthermore, playing the final in Durban, gives us an ideal platform to stage a truly memorable event."
