The age-grade competition will be organised in the Valencia region at the Campo de El Pantano, a rugby stadium located in Villajoyosa, from 14-27 September.
It will be the first time Spain and the Federación Española de Rugby (FER) organize the tournament.
The World Rugby U20 Trophy has provided a platform for the future stars of the game to shine since its introduction in 2008, with almost 500 players having graduated from the pathway to play test rugby.
Some of the most high profile graduates are Canada captain Tyler Ardron, Uruguay captain Juan Manuel Gaminara, Japan number eight Kazuki Himeno, Georgia fly-half Lasha Khmaladze and Fiji scrum-half Frank Lomani.
They were among the 107 U20 Trophy graduates named in Rugby World Cup 2019 squads.
World Rugby Chairman Sir Bill Beaumont said: “Our U20 Championship and Trophy events are cornerstones of the player development pathway to test rugby. The U20 Trophy has nurtured some of today’s best talents and I’m sure it will be no different in 2020.
“We are delighted that Spain will organize the Trophy. I know that they will be exceptional hosts and provide the teams with a superb environment to perform.”
Hosts Spain will be joined by Scotland, who were relegated from the U20 Championship earlier this year after finishing 12th, with the remaining six places determined by regional qualification tournaments.
Chipu participated in this year’s World Rugby U20 Trophy in Brazil where they finished sixth overall. This was the second time Kenya participated in this specific tournament with the first one being in 2009 when KRU were hosts at the RFUEA Grounds. The 2019 Chipu squad were the African representatives in Brazil after they beat defending Champions Namibia 21-18 in the Barthes Cup final held at the KCB Sports Club Ruaraka on 7th April 2019.
The winner of the U20 Trophy will be promoted to the World Rugby U20 Championship in 2021, replacing the team finishing bottom of the 2020 edition in Italy next June.
-Additional information from World Rugby