Plymouth's Royal Western Yacht Club is committed to organising the yachting extravaganza – titled Plymouth Race Week – in July 2011.
It is hoped the event, trading on the city's rich maritime heritage, ocean race pedigree and the natural amphitheatre of Plymouth Sound, will quickly establish it in the international calendar.
Chris Arscott, the club's commodore, said: "Here in Plymouth, we have all the facilities to offer the same quality event in a top-class sailing destination. It seemed a natural progression to hold an event on this scale. This will be a fantastic opportunity and will put Plymouth firmly on the map of international yachting events.
"It will be a great boost to maritime businesses in the area and to the local economy as a whole."
The first Plymouth Race Week will be held from July 7-10, 2011, a year before Olympic sailing events are staged at Weymouth, with the second event in 2013.
A tented "race village" will overlook Queen Anne's Battery marina while shops, restaurants and pubs on the Barbican will provide the perfect "apres sail", according to organisers.
Fairs, fireworks, a jazz festival and an appearance by the Red Arrows are just some of the activities already scheduled.
At least three separate race courses are planned both inside and outside the Plymouth Sound breakwater. The event is being supported by Sutton Harbour Group, Plymouth City Council and the Cattewater Harbour Commission.
More than 400 boats are expected at the regatta.
Malcolm Bell, chief executive of South West Tourism and himself a keen sailor, said the regatta had been well-timed, both in terms of the yachting calendar and the 2012 Olympics.
"It may take a number of years to build up, but it is very welcome. The South West is known for its beaches, coastline and watersports, and our watersports are very important.
"For Plymouth, it is also a chance to promote the spectacular waterfront rather than just the city."
Round-the-world sailor Conrad Humphreys said major events, like the 2011 regatta, were now recognised for their "economic and social value".
"We do have this natural resource and we do have this great waterfront which can be compared with the Barcelonas of this world," he said.