Former world champion Cavendish has already expressed a strong interest in competing in the event, which was won by his team-mate Serge Pauwels last year.
Dimension Data and Team Sky - who won the inaugural Tour de Yorkshire in 2015 with Lars Petter Nordhaug - are among six WorldTour teams that will race, with Astana, BMC Racing, Katusha-Alpecin and Team Sunweb the others.
Irish team Aqua Blue Sport are among seven Pro-Continental level teams alongside Direct Energie - whose Thomas Voeckler won in 2016 - Cofidis, Euskadi Basque Country-Murias, Rally Cycling, Vital Concept and Roompot-Nederlandse Loterij.
Yorkshire-based Holdsworth Pro Racing, a new team launched this year by the Downing brothers reviving a famous name from the past, have also been selected as one of six Continental level teams, with Canyon Eisberg, JLT Condor, One Pro Cycling, Madison Genesis and Vitus Pro the others.
The four-day men’s race begins with a stage from Beverley to Doncaster on May 3, and concludes in Leeds on May 6.
Twenty teams have also been named for the newly-expanded women’s race, which will be staged over the first two days.
Lizzie Deignan’s Boels-Dolmans’ squad headlines the list, although the 2017 champion will not be defending her title after announcing her pregnancy earlier this month.
The line-up also includes Canyon//SRAM, Wiggle High5, Trek Drops, Team Sunweb and Storey Racing.