At a Republican People's PartY (CHP) conference at a sports arena in the capital, Ankara, party chief Kemal Kilicdaroglu announced Ince as the candidate, to roaring applause from attendees.
"I will not just be my party's president, but a president for all people in Turkey", Yalova MP Ince said.
Meanwhile, opposition groups are expected to align before the June 24 election to challenge the dominance of Erdoğan's party. Ince is one of the most spirited speakers from the opposition in parliament.
Ince twice - in 2014 and 2018 - challenged Kilicdaroglu for the leadership of the CHP but failed to oust the incumbent head.
After the elections, a new presidential system agreed in an April 2017 referendum which critics claim gives the head of state authoritarian powers will come into force.
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He had famously vowed to sell off Erdogan's big presidential palace opened in 2014 should he be elected.
The early stages of the race were dominated by speculation Erdogan's former comrade and predecessor Abdullah Gul could stand against him.
Prime Minister Binali Yildirim said Erdogan, who leads the ruling Justice and Development Party (AKP), would be its candidate as part of an alliance with other political parties including the right-wing Nationalist Movement Party (MHP). The candidacy was also backed by the MHP.
The AK Party was the first to unveil its candidate for presidency, namely party Chairman Erdoğan, seeking a second term.