The Games, which will run from 18-29 October 2018, were founded by Prince Harry for military veterans who have suffered an injury or illness.
His royal redhead made the announcement in a video message featuring pop star Kylie Minogue, Wallabies captain Stephen Moore and several Australian Defence Force members.
"We had three key criteria — first, it had to be an iconic city, somewhere known the world over," Prince Harry said in the video. "Second, it needed to be a city with a proud military heritage, which would welcome competitors from all over the world with open arms.”
While next year's event will take place in Toronto, Canada, where the royal bachelor's American girlfriend Meghan Markle resides, it’s likely that Australian females will be jostling for an introduction to Prince Harry should he still be single the following year.
After all, Sydney has a reputation for bringing royals and civilians together during sporting events – it was the birthplace of the enduring love story between Princess Frederik of Denmark and Mary Donaldson, who famously met in a bar during the Sydney Olympics.