The parade will not include tanks but only wheeled vehicles, the memo stated.
"It will focus on the contributions of our Veterans throughout the history of the U.S. Military, starting from the Revolutionary War and the War of 1812 to today, with an emphasis on the price of freedom", according to the guidance memo from the Office of the Secretary of Defense.
Last month Trump asked the Pentagon to explore a parade in celebration of American troops, after the Republican president marveled at the Bastille Day military parade he attended in Paris past year.
Military parades in the United States are generally rare.
Photo A military parade through Red Square in Moscow a year ago.
While public opinion has been divided on the value of such a parade, Pentagon officials said last month they were studying options to execute the event at Trump's bidding.
The parade will cost taxpayers up to US$30 million (AUS$38.2 million), the White House budget chief said.
"We'll see if we can do it at a reasonable cost, and if we can't, we won't do it, but the generals would love to do it, I can tell you, and so would I", Trump said while calling in to a Fox News show in late February.
Other places in the world, though, are no stranger to military parades.
The idea for a parade appears to have been rekindled when the president visited Paris for Bastille Day in July and made no secret of his awe for the pomp and ceremony of the occasion.
And, Trump had told the Washington Post in January 2017 that he wants to put the military on display.