Breen will contest the March 21-23 event in his Sainteloc-prepared Peugeot 207 S2000 in addition to his already agreed eight-round programme.
ERC regulations state a driver can count his best eight scores towards the championship. Breen finished second on his first ERC outing of the season in Latvia at the end of January.
"Having the chance to drop a score takes some of the pressure of a championship challenge for this year," said Breen.
"This year is about learning the car and the rallies, but it's always there that you would want to have a shot at the championship and this is definitely going to help that - it makes it much more do-able."
Breen has never competed on the Canaries Rally before, but his returning co-driver Paul Nagle has been on the island when he competed with Kris Meeke on the event in 2010.
"Paul's talked a lot about the event," said Breen, "and I'm really looking forward to it. I supposed asphalt would still be my stronger surface, so the chance to bring in another asphalt rally is really good news for me. Now I need to get a good score and make it count."
It also gives Breen the chance to take a look at Robert Kubica as a potential ERC title threat.
"It's fantastic to have him there," said Breen, "having a name like his adds even more profile to the ERC for this year.
"It's great to have the chance to benchmark myself against one of the best. He has so much experience in motorsport and we all saw his pace on the Rallye du Var last year."
Kubica was leading Rallye du Var comprehensively when he crashed off the road after a wrong pace-note call.
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