The service will start at 11am at St Nicolas Church, Bartholomew Street, and finish at 11.30am.
During the service, the mayor, Jeff Beck, will perform a reading.
Just before the service, the standard bearers will walk from Newbury Town Hall to the church.
The submarine was lost in February 1943, failing to return to Algiers following a patrol. It sank with all 63 crew on board.
Last year’s event included a parade featuring members of the local submariners association, the Royal Navy Association and the Royal British Legion.