Warne, 52, was holidaying with friends in Thailand when he was found unresponsive in his villa on Friday and could not be revived.
Victorian Premier Daniel Andrews said on Twitter that he had spoken with Warne's family on Sunday and that they agreed to the service.
Andrews said the state funeral would be an opportunity for Victorians to pay tribute to Warne's contribution to cricket, the state and the country.
He said details would be finalised in the coming days.
