San Francisco will be the site of the 2013 America's Cup yachting contest.
The decision on where to stage the 34th Cup was ultimately up to Larry Ellison, the chief executive of software company Oracle Corp, whose BMW Oracle team won the event in races off Valencia in Spain last February, Reuters reports.
He sails for the city's Golden Gate Yacht Club.
Mayor Gavin Newsom said in a statement: "The selection of San Francisco today to host the 34th America's Cup marks the beginning of an extraordinary new chapter for our city and for the sport of sailing."
"Together, San Francisco and the Oracle racing team have seized a tremendous opportunity to showcase sailing in the magnificent amphitheatre of San Francisco Bay, provide jobs and a more than $1 billion boost to our City's economy and transform the America's Cup experience."
Founded in 1851, the America's Cup bills itself as the oldest active trophy in international sport.