Powell tied the 100m world record in Gateshead during the 2006 event (Getty)
Gateshead Stadium will host the Norwich Union British Grand Prix for the next three years, following an announcement by UK Athletics on Tuesday.
The meeting has traditionally moved on an annual basis but will now stay in the North East until 2010 in the build-up to the London 2012 Olympics.
UKA chief executive Niels de Vos said: "The North East has a fantastic athletics heritage.
"I know our athletes will enjoy competing regularly at Gateshead."
Triple jump world record holder Jonathan Edwards hails from Gosforth and is delighted with the decision to bring major events to the area.
"To have an athletics event of this scale on our doorstep during the countdown to 2012 should prove a further motivation for everyone connected with the sport in the area," he said.