"Those who have tied ribbons to the cathedral fence are invited to attend the service and move their ribbon to the new location," he said.
The memorial will include a statue of Mary the mother of Jesus, and a bench with a plaque inviting people to pray for victims of child abuse.
Bishop Kennedy will tie a ribbon at the new memorial and bless the bench and ribbons as part of the ceremony.
The decision to erect a memorial comes at the same time as the Armidale Regional Council discusses moving the Loud Fence ribbons from the Armidale Folk Museum and establishing a memorial within the city.
The Diocese of Armidale says it supports this initiative and does not intend its own memorial to replace such an initiative.