The event is for wounded members of the armed forces and has enjoyed two successful editions, with a third planned to take place in Canadian city Toronto next year.

The Sydney bid met the criteria established by the Invictus Games Foundation, which aims to develop and strengthen the event’s legacy.

The criteria includes a mandatory minimum of 10 participating nations, as well as 250 competitors and five sports.

A strong families programme, appropriate venues and sport infrastructure, extensive broadcast and media coverage and access to the Games for spectators were highlighted as other key criteria.

Prince Harry, Patron of the Invictus Games Foundation, has revealed Sydney will welcome more than 500 competitors to Australia in 2018 after winning the rights to stage the multi-sport event.

"We had three key criteria," he said in a video message.

"First, it had to be an iconic city - somewhere known the world over.

"Second, it needed to be a city with a proud military heritage, which would welcome competitors from all over the world with open arms.

"And finally, we wanted to go somewhere where they are absolutely sports mad and would really get behind our competitors.

"It was an easy decision really - the 2018 Invictus Games are coming to Sydney."

A total of 17 nations will compete in 11 adaptive sports in Sydney, with competition expected to take place between October 18 and 29.

Events will be held across Greater Sydney, including at both the Sydney Olympic Park and Sydney Harbour.

An announcement video was filmed at the Tourism Australia offices in Australia House, London, with Sydney 2018 ambassador and national rugby team captain Stephen Moore among those featuring.

Members of the Australian Defence Force, from all three services, and singer Kylie Minogue are also included in the video.

"The Invictus Games has shown us what can be achieved when wounded, injured and sick servicemen and women rediscover their fighting spirit through sport," Prince Harry added. 

"In London and again Orlando, we came away moved by the tales of courage that got each competitor through their rehabilitation to the start line of their chosen sport.

"Tens of thousands of people packed stadiums and millions more watched at home, we were all inspired.

"We have raised the bar higher with each successive Games, and I know that Toronto are planning an incredible event when they host the Games in September.

"And I am happy to say the Invictus Games journey won't end there."