The training, the first of its kind between the two armies, will be conducted Saturday in Tibet's Burang county which borders India, the Xinhua news agency said, citing defence ministry sources.
The exercise is aimed at enhancing mutual understanding and trust and promoting stability in the border area, Xinhua said.
The Asian neighbours held their first joint naval exercise last November and are scheduled to hold the next round of talks on a border dispute in September.
The world's two most populous countries fought a brief but bitter border war in 1962 and have never demarcated an official border.
India accuses China of occupying 38,000 square kilometres (14,670 square miles) of territory in Kashmir while Beijing lays claim to 90,000 square kilometres - all of Arunachal Pradesh state.