Rally Australia will move to a new location in Coffs Harbour for the 2011 season.

The event will move from the Northern Rivers area when it returns to the schedule next year, with the revised location set to provide a more compact event and attract more competitors to take part.

"We are disappointed to be leaving the Northern Rivers area," president of the Australian motorsport confederation Andrew Papadopolous said. "We had very strong support there from the councils of Tweed and Kyogle, the local businesses and the majority of residents and I thank all those people for their support.

"However, during this year we have in conjunction with our sporting officials and independent consultants and with considerable feedback from the FIA, North One Sport (the commercial rights holder for the World Rally Championship) and various teams and manufacturers, come to the conclusion that despite the overwhelming support we received, it is simply not feasible or practical to locate the event there in the future."

The Coffs Harbour area is also set to benefit financially from the switch, which will see Rally Australia in a new home for the third successive running of the event.

"This is an absolutely fantastic opportunity for the Coffs Harbour region," Coffs Harbour mayor Keith Rhoades said. "The World Rally Championship is broadcast in 186 countries and has a global audience of 53 million viewers. From an economic perspective, we would see around $15 million directly injected into the local economy through this one event alone.

"Coffs Harbour has successfully staged legs of the Australian Championships in the past and I'm confident we will provide a great venue for the World Rally Championships in 2011."

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