The NSW Premier Barry O'Farrell has committed to a three-year contract with ARIA and will work with organisers to develop a series of spin-off events for the public.
The move follows an offer by a Queensland promoter to stage the event on the Gold Coast, in an attempt to revive the beleaguered event. The 2010 presentation was widely lambasted when it was unsuccessfully broadcast as a part of an open-air concert on the steps of the Sydney Opera House.
Lack of TV network interest in the awards saw it telecast by Nine's little-watched digital channel GO! in 2011.
Describing Sydney as "the home of the Australian music industry", O'Farrell told the Telegraph, "Sydneysiders and visitors can expect a revitalised program of music events in the week leading up to the ARIA Awards to cater to music fans and the industry alike."
ARIA chairman Denis Handlin added in a statement, "We look forward to hosting the ARIAs in Sydney for a further three years, as well as establishing a series of exciting new events to further develop our industry and extend the reach of the ARIAs."
ARIA's CEO Dan Rosen added, "An announcement will be made in the coming weeks regarding details of the 2012 ARIA Awards, as we look forward to another magical celebration of Australian music on our industry‟s night of nights”.
This week's new sets include music from locals Gurrumul, Josh Pyke and West Thebarton Brothel Party plus new tunes from The Maccabees and Albert Hammond Jr.