George W Bush and his wife Laura have also announced plans to be there, saying they want to “witness the peaceful transfer of power”.
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The Manhattan business mogul will be sworn in as the 45th US president on Capitol Hill on 20 January.
Trump defeated Mrs Clinton in November’s election and castigated Bush over the Iraq war and 9/11.
Before Tuesday’s announcement, Jimmy Carter was the only former president to have said he would attend the nation’s 58th inauguration.
Another former White House incumbent, George HW Bush, 92, has already said he will not attend the event, citing his age.
Mrs Clinton has largely avoided the public eye since Trump’s upset victory in November after a bitter campaign in which he called her “crooked Hillary”.
Trump also ridiculed George W Bush’s claim to have kept Americans safe, pointing out the 9/11 attacks happened on his watch.
He further accused the 43rd president of lying about weapons of mass destruction in Iraq, reports the BBC.
And Trump pummelled another member of the Bush clan, former Florida Governor Jeb Bush, calling his primary season rival “low-energy”.
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