The 2010 FIFA World Cup draw will be held in Cape Town, city mayor Helen Zille said on Wednesday.
Zille said the decision by FIFA was a "major coup" for the city.
Speaking during her budget speech, she said: "I welcome this vote of confidence in our city's readiness to host major international events."
She said that construction of the new Green Point Stadium was on schedule, with over 35 percent complete.
In the latest construction milestone, the main support columns had reached their full height.
"The eyes of the world will be on Cape Town on December 4, 2009, when the final draw for the 2010 FIFA World Cup takes place in the city, and will be broadcast live around globe," she said.
At the draw the final 32 teams taking part in the tournament, and the groups they would play in, would be announced.
The event would take place before an estimated audience of 8000 guests at the Cape Town International Convention Centre. It was expected to attract a large television audience, the international soccer fraternity, celebrities, administrators, sponsors and the media.
The soccer fraternity would spend a week in Cape Town, with four days of events planned.
According to tourism figures, every foreign visitor spent between 500 rand (about 7.5 rand equals 1 U.S. dollars) to 800 rand a day in Cape Town.
There would also be other large-scale events showcasing the city's scenic beauty and attractions.
The final draw would take place exactly six months before the 2010 World Cup kicked off.
Green Point Stadium was set to be complete by December 15, 2009.
(Xinhua News Agency May 29, 2008)