Sydney has won the rights WorldPride in 2023 and will become the first city in the southern hemisphere to ever host the major international LGBTQI event.

Key points: There are estimates WorldPride could bring more than 1 million visitors to Sydney

There are estimates WorldPride could bring more than 1 million visitors to Sydney Sydney won the bid with 60 per cent of the vote, beating Montreal and Houston

Sydney won the bid with 60 per cent of the vote, beating Montreal and Houston The 2021 event will be held simultaneously in Copenagen, Denmark and Malmo, Sweden

The city's win was announced in Athens at an annual general meeting for InterPride, the international association of pride organisations, on Sunday night (AEDT).

The New South Wales capital was chosen by 60 per cent of InterPride members, with Montreal, Canada winning 36 per cent of the vote and Houston, Texas 3 per cent.

Members from the Sydney Gay and Lesbian Mardi Gras team attending the AGM in Athens were seen erupting in applause.

"Congratulations to us here in Athens with the beautiful Greek people. We won. A lot of hard work," said Graham Simms, a Gadigal elder.

"Sydney, we're coming for ya, baby."

There are estimates WorldPride could bring more than 1 million visitors to the city, and Arts Minister Don Harwin said it could be "a real shot in the arm" for local businesses.

New York City hosted pride for 2019. ( Instagram: @izzystardustnyc )

Minister for Tourism Stuart Ayres said it could generate an economic footprint of over $664 million.

"Sydney is a truly cosmopolitan city with an amazing harbour, delicious food and beverage, world-class transport and a proud history of celebrating diversity," he said.

"This global event undoubtedly belongs in Australia's global city."

The biennial pride event, sometimes referred to as the "gay Olympics", was hosted in New York City this year and has also been held in London, Toronto and Jerusalem.

The event is slated for February and March in 2023 and will coincide with the 45th anniversary of Sydney's Mardi Gras parade.

It is estimated over 1 million visitors will flock to Sydney for the event. ( ABC News: Kevin Nguyen )

In its bid to the win the rights to host the event, the Sydney Mardi Gras team said it wanted to include a strong message about the Asia-Pacific region, where some countries have criminalised homosexuality.

"LGBTQ communities in the region experience some of the worst human rights abuses in the world, but the region is very under-represented in InterPride," it said.

Sydney Mardi Gras co-chair Giovanni Campolo-Arcidiaco said bringing WorldPride to Australia meant "we can celebrate and shine a spotlight on the unique challenges faced by the LGBTQI community in the region".

The 2021 event will be held at the same time in Copenhagen, Denmark and Malmo, Sweden.

It will also be the first time it's been held in the southern hemisphere ever since the inaugural WorldPride was held in Rome in 2000.