BALTIMORE (AP) _ The nation's longest continuous intersectional college football rivalry will be renewed next year in Baltimore, the city where the first game between Navy and Notre Dame was played in 1927.

Mayor William Donald Schaefer confirmed Monday that the Navy-Notre Dame game, last played here in 1958, will return to Memorial Stadium Nov. 1, 1986, with a showy march to the city-owned field by all 4,500 midshipmen.

Schaefer said he hoped next year's game will be ''the renewal of a long relationship,'' but acknowledged that other cities also will bid to hold Navy's home game in the series every two years.

The Navy-Notre Dame game has been played in Baltimore 17 times. The Irish took a 40-20 victory when it was last played here 27 seasons ago. The Middies last played in Baltimore in 1960, beating Air Force 35-3. The superintendent of the Naval Academy, Rear Adm. Charles R. Larson, attended a news conference announcing the game and recalled attending four Notre Dame games in Baltimore during the 1950s.

Lou Grasmick, the city's representative in talks arranging the game, said a sellout of the 60,000 seats, each costing $18, would bring in $1 million.