Australia A will make their debut in the Pacific Nations Cup in 2007.
They will join Fiji, Japan, Samoa, Tonga and the Junior All Blacks in the tournament, which replaces the Pacific Five Nations.
It will give emerging Australian players the chance to stake their claim for spots at next year's World Cup.
"The introduction of Australia A adds a further competitive edge to the round-robin format," said the International Rugby Board's Mark Egan.
"It will guarantee an even greater number of top-level matches for the tier two unions and greatly assist in Rugby World Cup 2007 preparations.
"The Tournament will provide an excellent testing arena for the high performance programmes that are being developed in each tier two union."