The castle is worth an estimated $25 million and was owned by the late Queen Marie who bequeathed it to her daughter Princess Ileana in 1938. It was confiscated by communists in 1948 and fell into disrepair. It will be transferred on Friday to Dominic van Hapsburg, a New York architect who inherited the castle from Princess Ileana decades after the communists seized it.
Van Hapsburg is a descendant of the Hapsburg dynasty which ruled Romania for a period starting in the late 17th century.
The hand-over ceremony will take place Friday at noon in the 14th century castle's museum deep within the fortress in Transylvania, minister Adrian Iorgulescu said.
Restoration work began in the late 1980s and was partially completed in 1993. It is now one of Romania's top tourist destinations. Under the agreement, the owner will not be allowed to make any changes to the castle for the next three years, Iorgulescu said.
While known and marketed as "Dracula's Castle," it never belonged to Prince Vlad the Impaler, who inspired Bram Stoker's Count Dracula character. But the prince is thought to have visited the medieval fortress. The Gothic fortress, perched on a rock, has appeared in numerous Dracula movies.
The castle is the most famous of 15 citadels and fortresses in the area, which were built by peasants to keep out marauding armies of Turks and Tartars and cruel local medieval lords.
Another former royal property, the Peles Castle, built in the late 19th century in the mountain town of Sinaia, will be returned to former King Michael. He owned it before it was confiscated by the communist regime in 1948.
Romania passed legislation earlier this year to return property to its former owners and establish a "property fund" to pay damages for assets that cannot be returned. The fund includes stock in state-owned companies that are being privatized.