Sydney and Brisbane will be two of three host cities at next January’s inaugural ATP Cup, with more than 100 players competing for A$22m (12.3m).
The final of the 24-nation event, carrying 750 ranking points, will be in Sydney with a third venue to be chosen.
ITF president David Haggerty says the tournament could amalgamate with a revamped Davis Cup in the future.
The WTA is also discussing “exciting new concepts for women’s tennis” with Tennis Australia.
The organisation’s chief executive Craig Tiley said: “We want more players rewarded, more opportunities for them, more opportunities for fans to get to see them and more global exposure for the sport.”
The current Davis Cup format is being overhauled and replaced by an 18-nation World Cup-style event to be held in Madrid in November 2019.