The northern New South Wales town of Armidale will accept around 200 refugees who have fled conflicts in Iraq and Syria.
The first intake of refugees will start arriving in the city from January/February next year.
Social Services Minister Christian Porter says all the factors came together to make Armidale the right place for the new refugee resettlement site.
The announcement is not part of the 12,000 places for Syrian and Iraqi refugees allocated by the former Abbott Government, which have already been filled.