Other guests at the event include three US senators, five congressmen, three senior advisors in the Obama administration and deputy US secretary of state. Security experts, businessmen and academics are also slated to participate in the event.
Clinton will arrive in Israel on Saturday while Schwarzenegger is set to land in the Jewish State on Sunday aboard his private jet.
Israeli participants in the forum include Prime Minister Benjamin Netanyahu, former Prime Minister Ehud Olmert, Defense Minister Ehud Barak, Foreign Minister Avigdor Lieberman, Opposition leader Tzipi Livni, Military Intelligence chief Amos Yadlin, Shin Bet Chief Yuval Diskin and Governor of the Bank of Israel, Stanley Fischer.
Forum debates will be closed to the public and will focus on US-Israeli relations, the Iranian nuclear threat, environmental issues and a variety of other topics.
Visit in Ramallah
Members of the forum will be visiting Ramallah on Sunday and are scheduled to meet with Palestinian Prime Minister Salam Fayyad. Sessions will conclude on Monday.
The Saban Forum is the initiative of Israeli-American communications tycoon Haim Saban, who founded the Saban Center for Middle East Policy at the Brookings Institute in Washington.
The forum convenes alternately in Jerusalem and Washington and serves as a platform for dialogue between Israeli and American senior officials.
Saban said he hoped the dialogue would help in strengthening bilateral ties between the two countries.
Jerusalem's King David hotel will host some of the forum's participants, including Clinton, Schwarzenegger, US Senator Joe Lieberman, former US Ambassador to Israel Martin Indyk and host Haim Saban.
Forum organizers have secured 200 hotel rooms and 15 suites, including the presidential suite, to accommodate the visitors.