City of Greater Bendigo Mayor Peter Cox described the 12-day event as the biggest sporting event the city had hosted.

"This is an exciting event for Bendigo," he said. 

"It highlight's the city's reputation and capacity to host national sporting events."

The festival, to be held in September, will include the Aerobics Australian Championships and AEROSchools competition as well as the inaugural National Clubs Carnival.

"The beauty of this event is that we have beginners up until the elite," Gymnastics Australia chief executive Mark Rendell said. 

"We should expect to see future Olympians and future world championship athletes from Australia in Bendigo."

The event will showcase a range of Olympic disciplines as well as rhythmic and trampoline gymnastics.

Rendell said it would be the first time all seven gymsports will be in action at the same time. 

He said Bendigo would provide a unique home for gymnastics carnival for the next three years and hoped it would encourage more youngsters to have a go at the sport.

"Normally you would be bringing this event to a major capital city," Rendell said. 

"We have gone through an 18 month process. 

"We looked at venues that logistically we think can host it and Bendigo has the stadium, the new theater and the Flora Hill stadium.  

"We then looked at the logistics of accommodation and transport and Bendigo fits the mould. 

"You have to give credit to the City of Greater Bendigo and what they have been able to develop."

Cr Cox said the carnival would also bring a range of economic benefits to the region. 

"The city continues to work hard to attract events to the region," he said. 

"The carnival will provide a significant economic benefits for our local economy over the next three years and will showcase Bendigo's wonderful facilities and lifestyle to some 4000 people."