Perth has been chosen as the third city to host the inaugural ATP Cup in January 2020, signalling an end to its association with the Hopman Cup mixed team event for the past 31 years.
Sydney and Brisbane were announced as the other host cities for the event which takes place from January 3, before the Australian Open, with Sydney hosting the knockout rounds and final.
This year's Hopman Cup saw Roger Federer and Serena Williams play against each other for the first time in their careers, but its founder and four-time Grand Slam doubles champion Paul McNamee admits the tournament has an uncertain future.
"My immediate feeling is sadness that it's not going to be there anymore and concern about where the Hopman Cup may be in the future," he told ABC News.
McNamee said watching two of the sport's biggest names share the same court together was a fitting farewell to Perth as a host city.
"If there was a sign off... to say well, bye bye Hopman Cup, it was the fact that probably the two greatest players in the history of the sport, Roger Federer and Serena Williams, went on court at the Perth Arena and went head-to-head," he added.
Roger Federer and Belinda Bencic of Switzerland defended their Hopman Cup title in January
The ATP Cup will have 750 ranking points and $22 million in prize money up for grabs.
"The ATP Cup will launch the global tennis season for the men," Tennis Australia CEO Craig Tiley said.
"Four of the top 12 male players, and eight of the top 24, will play in Perth, with 24 teams competing across three cities - Perth, Brisbane and Sydney."
Novak Djokovic has previously backed the introduction of the ATP Cup
The event leaves no room in the revamped tennis calendar for the Hopman Cup, which has traditionally served as a warm-up for the year's first Grand Slam.
The International Tennis Federation (ITF) - which runs the Hopman Cup - said it was "committed" to continuing to stage the tournament and had begun looking for a new tournament partner.