The event will be held in January next year and hosted by the Otago branch of the Vintage Car Club of New Zealand.
''Registrations haven't closed yet but we're hoping to get a minimum of 800 vehicles registered. There's going to be a lot of people here in Dunedin,'' rally director Nicola Wilkinson said.
The scenery in Dunedin made it an appealing host city for the event, she said.
''We're actually heading out into different areas, so as well as seeing the Dunedin attractions we'll be heading out to Balclutha, Lawrence, Middlemarch and Waikouaiti. There are a lot of good driving roads in between to travel on.''
The festival was a chance to meet up with like-minded people, she said.
''We've also got people from the United States, Australia, the United Kingdom, Sweden and Canada. A lot have been to previous events and they always put it on their calendar to come back.''
The festival has been recognised as beneficial for the city and received funding from the Dunedin City Council ($20,000) and the Otago Community Trust ($40,000).
Trust chief executive Barbara Bridger said the festival was special event for the city.
''The trust is keen to fund events that are being run by local groups and the fact that it was planning to bring at least 800 people in to the Otago region made it something we wanted to get behind.''
Many of the smaller communities in the Otago region would benefit as well, she said.
''A lot of festivals and events are centred in the region they're being planned for. This one seemed to include a wide area. We're always keen to get behind things that showcase our region and make people want to visit.''
Enterprise Dunedin director John Christie said the festival would have economic benefits as well.
''There's a significant number of people coming for a reasonable period of time so it will be a significant event for the city and obviously there are economic benefits from having events of that nature in this city.
''We know we are good hosts in terms of rolling out all the appropriate hospitality and making sure those visitors have a chance to see all the region has to offer,'' Mr Christie said.
Dunedin would benefit in various ways, not just economically, he said.
''It gives us a chance to show Dunedin off to a lot of these people in a wider sense and I think that's just as powerful. There will be a lot of media coverage as well.''
