Australia's first $10 million race will be open to local and overseas sprinters with the winner to collect A$5.8 million.

Based on the same concept as last Saturday's Pegasus Cup in the United States, 12 slots are available at A$600,000 each for the inaugural running of the world's richest sprint race on turf on October 14 at Randwick.

To be known as The Everest, the 1200m-weight-for-age sprint is designed to lift the Sydney spring while not encroaching on the Melbourne carnival. Racing NSW chief executive Peter V'landys said the racing body and the Australian Turf Club had been working on the details of the race for several months and the response had been positive.

He said the prize money would be funded by the subscriptions to the race and additional revenue generated by the event.

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"There will be no current revenues used for the race," V'landys said.

"It will be funded by the slots sold.

"It fits into the calendar when there is no rugby league or AFL to compete with and it is in between Melbourne's major sprint races.

"It may one day be the first major race held on a Friday night under lights at Randwick, but not this year of course."

Racing NSW and the ATC say the initial commitment to The Everest is for three years.