Townsville City Council has approved a development application for a motorsport and driver education facility in Calcium.
The final development will have a range of options including a racing track, drag racing, rally racing, speedway and a burnout pad.
Townsville Mayor Jenny Hill said the finished product will be a massive asset for the city.
"This is a very good news story for motorsport fans in Townsville," Cr Hill said.
"The region really needs a facility like this – we don't have anything like this and DriveIT NQ have worked hard to get to this point.
"Council is backing the project by agreeing to lease the Calcium site to DriveIT NQ, which is located on former CSIRO grazing land."
Cr Hill said it will make Townsville the motorsport capital of Northern Australia.
"Townsville residents have really embraced the V8 Supercars and this project will bring more major events to the city," Cr Hill said.
"Local businesses will profit from a range of new sporting options which will attract people to the region.
"It offers a range of options from drag racing to go-karting and remote-controlled cars."
Stage one of the development will include an off-road rally circuit, a driver education pad and a karting track.
The second stage will include drag strip meets and motorkhana.
Cr Hill said the approval includes event guidelines for managing noise, lights and dust.
"This development is something the community has been asking for a long time and there are a number of conditions that will minimise the impact to neighbouring properties, Cr Hill said.
"This includes managing noise levels at all events and guidelines on operating hours within the precinct."
