Golf Australia chief James Sutherland said on Wednesday he envisages the Australian Open becoming one of the world's top tournaments after the PGA Tour agreed to co-sanction the event.
The Open has a prestigious history dating back to 1904 and in recent years has been in partnership with the DP World Tour, formerly the European Tour.
That will continue with the US PGA Tour also on board for the first time, starting in 2027 for an initial three years.
It put to bed speculation that the Australian Open may team up with the struggling LIV Golf tour.
The PGA Tour's commitment will see the event given a distinct window in the global golf calendar and a signifiant boost in prize money to help attract the world's best players.
"Our ambition is clear," said Sutherland.
"We want the men's Australian Open to be recognised among the top 10 most prestigious golf tournaments globally, and everything we are doing for the event flows from that ambition."
Bumper crowds turned out in December when Masters champion Rory McIlroy was the star attraction, with the six-time major winner again heading to Melbourne this year.
But the tournament has traditionally clashed with Tiger Woods' Hero World Challenge, which has kept other big names away.
"This agreement with the PGA Tour, DP World Tour, and the Challenger PGA Tour of Australasia strengthens the global relevance of the championship and gives us another important platform to keep growing the event year-on-year," added Sutherland.
PGA Tour senior vice president Christian Hardy said they were thrilled to finally be heading to Australia.
"The Australian Open remains one of the most prestigious events in global golf and our members have long valued the opportunity to compete in Australia," he said.
"We look forward to continuing to build on this relationship in the years ahead."