America's Cup holders Alinghi have accepted Valencia as the venue for next year's race against challengers BMW Oracle.
Alinghi had previously wanted to hold next February's event in the United Arab Emirates and last week offered Australia as an alternative.
The two sides have been locked in a legal dispute for more than two years over the terms of the race.
The Swiss say they intend to publish a Notice of Race immediately.
BMW Oracle Racing has begun installing an enormous wing sail on its monster trimaran at its boatyard on San Diego Bay.