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The development was confirmed to PTI by a senior CCI office-bearer, who said it was an unanimous decision of the club’s managing committee.
The gate on Dinshaw Vaccha Road at Churchgate will be named after Merchant, a former president of the club, he said.
The function to name the gate after the legendary cricketer will be held on August 8, the official said.
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Merchant, who represented Mumbai in domestic cricket, played 10 Tests for India and scored 849 runs.
The CCI had earlier named one of its gates after Rajsingh Dungarpur, former chairman of selectors, who is credited with picking legendary Sachin Tendulkar for the first time in the national side.
That gate was inaugurated by Tendulkar himself in 2017. Merchant, who died in 1987, was CCI president from 1971 to 1985.
The CCI official said several prominent cricketers, including former England skipper Mike Gatting and ex-India captain Nari Contractor, are expected to attend the event.