Tamworth will host the NSW Country Rugby Championships until 2022, after the Tamworth Regional Council agreed to provide $15,000 in sponsorship for the event over the next three years.
The Wests Entertainment Group has also agreed to financially support to championships, to be held over the June long weekend at Scully Park and Ken Chillingworth Oval.
More than 600 players, plus many more support personnel and spectators, will attend the annual event.
Council's economic development team said the three-day tournament would pump some $440,000 into the local economy.
Tony Byrnes, Central North Rugby Union president, described the development as "tremendous news for rugby in this region". "And that's following on, of course, from the Waratahs playing a round here of Super Rugby in March," he said.
"So, it's great news. And it gives us here as the home zone the opportunity to show off our strengths, and hopefully we'll also perform on the paddock."
Byrnes said Scully Park had "come through the dry times really well".