“We are delighted to reach another significant milestone on our journey to Men’s Rugby World Cup 2027,” World Rugby chair Brett Robinson said in a statement.
Local media reported that the final would be played at the Sydney Olympic stadium, an 80,000-seat venue purpose-built for the 2000 Olympics.
Sydney last hosted the World Cup final in 2003, when Australia lost to England in a gripping clash that went to extra-time.
Rugby Australia chief executive Phil Waugh, who played for the Wallabies in that game, said playing a home final was the “absolute pinnacle” of his career.
“I am delighted this generation of Wallabies will have the privilege of experiencing the emotion, excitement and joy of pulling on the gold jersey before our passionate fans at a Men’s Rugby World Cup in own backyard.”
Sydney will also host two semi-finals, the third-place playoff, and a string of other knockout and pool stage games.
The rest of the schedule is split between Brisbane, Melbourne, Newcastle, Perth, Adelaide and Townsville.
The tournament will run from Oct 1 to Nov 13, according to the World Rugby schedule.