The Hollies will perform at the stadium on February 1, as part of the Ride the Rhythm event, an equestrian show featuring a grand prix event with $50,000 prizemoney.
Promotor Andrew Hansen, from Event Pro, said he believed mixing horses and a major concert was a world first.
He described it as a "magical night of music and thrilling equestrian entertainment all under one roof".
"It does seem a little strange, but we think it will work," Mr Hansen said.
The Hollies, formed in Manchester in 1962, have had many No 1 hits, including He Ain't Heavy, He's My Brother, Carrie Ann, The Air That I Breathe, Bus Stop and Long Cool Woman.
There have been many changes to the line-up, but the band has never officially broken up and continues to tour and record. Lead guitarist Tony Hicks and drummer Bobby Elliot have been in the band since 1963.
The horses and the Hollies would not appear together at any point, but the cost of the ticket would cover both events, although attendance at either was optional, he said.
The equestrian event, including the grand prix with New Zealand and Australian competitors and national height record attempts, would begin at 4pm and the Hollies would start at 8.30pm, after the equestrian equipment was removed.
Dunedin Venues commercial manager Guy Hedderwick said the event would showcase the versatility of the stadium.
Ride the Rhythm joins a six-week line-up of big sporting and entertainment events, most at the stadium, in Dunedin early next year, which it is hoped will provide an economic boon for the city.
Stunt show Nitro Circus starts things off on January 25, followed by Ride the Rhythm on February 1, the Classic Hits Winery Tour on February 17, a double-header weekend with the Highlanders' first Super 15 rugby game of the season (against the Chiefs) and the Warriors v the Broncos match on February 22 and 23 respectively, and then Wellington Phoenix plays Melbourne Heart in a A-League football match on March 3.
Away from the stadium, students will be returning to study, Orientation will be on, and the England v New Zealand cricket test is scheduled at University Oval from March 6 to 10.
All the activity promises to bring people to the city.
Otago Chamber of Commerce chief executive John Christie said the city's businesses would definitely welcome the additional economic benefits.
Any one of the events would bring gain for the city, and to have a group of them all together was fantastic, he said.
Tourism Dunedin chief executive officer Hamish Saxton said Dunedin was fortunate to be the only South Island venue for The Hollies and such headline acts, combined with other special interest events, would attract a wide range of people from out of town.
Hospitality Association of New Zealand Otago branch president Mark Scully believed the events could bring millions of dollars to the city's hospitality establishments.
While the events would not bring the same sized crowds as the Elton John concert or the Rugby World Cup games, they would still have a profound impact on the local economy and the city's reputation.
"The beauty of the events is the diversity. It's not hitting the same pockets again and again."
Dunedin Mayor Dave Cull said he was looking forward to The Hollies concert.
"The 'air that we breathe' that night will be thick with nostalgia. It takes me back."
He was delighted to see so many events being packed into the summer months.
"This is what the stadium was built for - this is great. I'm pleased to see it getting used and I hope it continues."
Ride the Rhythm event
When: February 1, Forsyth Barr Stadium, Dunedin.
Equestrian event from 4pm. The Hollies from 8.30pm.
Tickets: Prices to both shows range from $35 to $150 for adults, and from $20 for children.
General admission ticket-holders in the Mitre 10 stand for the equestrian event can filter on to pitch to stand for the concert.
About 1000 top-price ticket-holders will have seating on the pitch in front of the Otago Daily Times stand, where the Hollies will perform. These ticket-holders will move from the lower seats in the North Stand to the chairs after the equestrian event.
Seated tickets for the whole show available in the North and South stands.
Tickets for Dunedin residents go on sale on Friday, and on general release on November 3.
