The song, We Write the Story, was penned by the two Swedish musicians together with music by Tim Bergling, aka Avicii, a 23-year-old Stockholm-born DJ.
"This is a lot of fun and very inspiring,” Benny Andersson and Björn Ulvaeus said in a joint statement.
"Martin Österdahl and show producer Christer Björkman presented us beautifully with SVT's vision for the contest. This led us on to the assignment to collaborate with Avicii on a piece on mutual understanding and fellowship."
According to the official Eurovision website, the song will be the main theme of the music extravaganza and also the anthem performed as the grand opening act of the final.
It wasn't only the Abba members that were beaming with the opportunity.
"To experience the union of two of Sweden’s biggest musical exports and the collaboration between generations is extremely exciting,” Ash, executive producer of Avicii, said in a statement.
The song will be performed for the first time at the Eurovision Final in Malmö on May 18th.
For Abba fans who can't wait until Eurovision to get a taste of the Swedish super group, the Abba Museum is set to open its doors to the public in early May on the Stockholm island of Djurgården.