The decision was announced on Monday by interim Mayor Myron Lowery.
Jack Sammons, chief administrative officer, said the administration and stadium managers project beer sales to net $200,000, which will be used to offset some of the $5 million spent on stadium improvements this year. The city expects the stadium to run a deficit of $261,000.
Memphis joins Houston and Tulane as members of Conference USA that sell beer at football games.
Beer is already sold at the AutoZone Liberty Bowl and Southern Heritage Classic.
Sammons said draught beer will be sold in clear plastic cups, and everyone will be carded for identification. But there will not be any beer stands in the student section. And sales will be cut off after the third quarter.
The administrative decision does not require City Council approval, Sammons said.
Memphis opens the season against Ole Miss on September 6th.