The Welsh Government is to form a joint venture partnership with Wesley Clover, the parent company of Celtic Manor Resort, to develop an £80m international convention centre for up to 5,000 delegates.
Located within the 2,000 acre grounds of the resort, which comprises a 333-bedroom resort hotel and 70-bedroom manor house, the 20,000sq m centre is expected to be completed and in use by 2019.
While funding for the development will be shared between the Welsh Government and Celtic Manor, the exact split has not been revealed.
Edwina Hart, minister for economy, science and transport, said that the convention centre will provide a "considerable" economic boost to Wales.
"The 2014 NATO Wales Summit and the 2010 Ryder Cup demonstrated that Wales and the Celtic Manor Resort have the ability to host events on a global scale," she explained. "We need a world-class convention centre in order to capitalise on Wales' growing reputation in this area, to host international events and conferences on a regular basis."
Sir Terry Matthews, chairman of Wesley Clover, said: "I am delighted that we have reached this agreement in principle with the Welsh Government. I am confident the new convention centre, and the joint venture company, will be a financial success."
The convention centre will be the largest in Wales, enabling Celtic Manor to expand its status as a conference hotel, enabling it to host political party summits and company conferences.
It will add to the appeal of the resort, which already has golf courses, two spas, two health clubs, tennis courts, mountain biking trails and six restaurants.