Newcastle will take over from Sydney's as host of the season-ending Supercars race for the next five years, beginning in 2017.
The new event will replace the Sydney 500, which has been held at Olympic Park each December since 2009.
The street circuit will pass major Newcastle landmarks, including Nobby's Beach and Fort Scratchley.
"The Hunter has thousands of Supercars fans who now have an evenspspt to call their own," NSW Premier Mike Baird said.
"The Newcastle 500 will be the first Supercars race ever held in Newcastle and is another major event secured for regional NSW."
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