The picturesque venue will also stage the first Qualifier on 6 February while the Wanderers will host the Eliminator match on 7 February and second Qualifier on 8 February.
SA20 league commissioner, Graeme Smith said: "Cape Town is not only a global tourist destination for summer holidays but is a proven event destination successfully hosting the Women's T20 Cricket World Cup Final, the Volvo Ocean Race, the URC Final, the Cape Epic and many more.
"This is a city with a unique vibe, iconic locations and incredible entertainment options. We look forward to it hosting a world class Final come 10 February 2024."
Cape Town deputy mayor Eddie Andrews added: "We were proud when the joint-most successful IPL team, Mumbai Indians, chose Cape Town to be home for their SA20 franchise and hope that securing Newlands as the venue for the Final will be a good omen for MI Cape Town in Season 2.
"We saw the buzz around the city, from cricket enthusiasts to casual sports fans alike during Season 1. Furthermore, the economic and environmental impact of the League aligns with our goals of making lives better for our citizens.
"We can't wait to work with SA20 to showcase incredible cricket and our incredible city throughout the tournament, culminating in the playoffs and final at Newlands."
The playoffs are a new addition to the anticipated Season 2, with the top two teams contesting Qualifier 1, number three and four playing in the Eliminator and the loser of Qualifier 1 and the winner of the Eliminator playing in Qualifier 2.
This will set up a championship clash between the winner of Qualifier 1 and the winner of Qualifier 2 in the final on 10 February.
The SA20 will get underway on 10 January 2024 when defending champions Sunrisers Eastern Cape host Joburg Super Kings at St George's Park in Gqeberha.