The Academy hopes that more theaters will be allowed open by spring, allowing more movies to compete in the event.
Because the March lockdowns, the COVID-19 pandemic has crippled the movie business, with film theaters closed and manufacturing halted.
"The Oscars in-person telecast will happen", a representative from the Academy has told entertainment website Variety.com.
"The Academy has done a walkthrough of the Dolby recently to see all the multiple options", an awards publicist added.
There was no immediate indication of what those options might be, what safety protocols will be in place or how numerous theater's 3,400 seats might be filled. That will nonetheless create some questions as to precisely how many individuals are allowed inside the three, 400-seat Dolby Theatre in Los Angeles, the place the ceremony historically takes place. Until now, it was unclear whether the Academy Awards would take place virtually like the Emmy Awards did over the summer.
Back in September this year, the Emmy Awards were staged at a almost empty venue in Los Angeles. with the nominated artists and presenters doing the honours via live screens from their homes. The organisers are now figuring out safety and seating plans. There is speculation about the awards ceremony and who will be up for an award, but with seasoned actors such as Meryl Streep and Anthony Hopkins tipped for nomination, it remains to be seen if they would attend the ceremony given their age and vulnerability to the coronavirus.
However, it is yet to be confirmed what safety procedures will be put in place for several upcoming award shows.
There are still four televised awards shows that lead up to the Oscars: Golden Globes (February 28), Critics Choice (March 7), SAG (March 14) and BAFTA (April 11).