The 23-year-old Slovakian will be joined by David Millar (Garmin-Sharp), a Sky squad that includes Ben Swift and Chris Sutton and Matt Goss (Orica-GreenEdge)
The race has a strong African feel too. Daryl Impey (Orica-GreenEdge), who became the first African to wear the Tour de France yellow is set to ride the 140-mile race that starts at the Queen Elizabeth Olympic Park and will likely to finish with a thundering sprint on the Mall in the shadow of Buckingham Palace.
And Germany's Gerald Ciolek who won this year's Milan-Sanremo in frigid conditions will lead MTN-Qhubeka, the first ProContinental team from Africa.
Sagan won fame for his wheelie pulling salute on the Mont Ventoux and for dying his goatee and hair green for the finale on the Champs Élysées last Sunday.
"This star-studded field, headed by Peter Sagan, in the first year of the Prudential RideLondon-Surrey Classic is testimony to the international standing of the event and our ambitions for the future," said Race Director Mick Bennett.
The Prudential RideLondon-Surrey is the flagship event in a weekend of cycling in the capital on 3-4 August. Other events include a 100-mile sportive, a professional women’s criterium and the Freecycle, where an eight-mile loop will allow families to visit some of the capitals most famous landmarks on traffic fee roads. More than 50,000 people are expected to take part in the Prudential RideLondon Freecycle alone.