"I'm honoured to be in their company and being part of that," Priest told The Daily Post.
He knows his music is appreciated in Rotorua, remembering from previous visits the locals "appreciation for reggae music".
He was looking forward to being back in Rotorua this weekend and said his performance at the festival would be interactive.
"Everybody's going to enjoy themselves," Priest said.
"I will be bringing some more surprises. We like to get everybody involved."
Priest is one of only two British reggae acts to have an American Billboard number one - for the track Close to You.
He has recorded top 10 duets with Roberta Flack and Shaggy and has worked alongside many other artists including Sly & Robbie, Jazzie B, Apache Indian and Shabba Ranks.
"Whatever I've done I've done from my heart, I've done it because it felt right," he said.
Kiwi artists performing at Raggamuffin include Che Fu and the Krates, Nesian Mystik, 1814 and Sons of Zion.
Tickets for the Raggamuffin festival are available through Ticketmaster.