As the name suggests, the main aim of the race is to further fuel rivalry between Australia and New Zealand.
It will be an invitational race with a New Zealand panel selecting five Kiwi trotters to contest the race and an Australian panel choosing five Aussies.
The plan is to grow the race to include up to two international horses, most likely from France or Scandinavia, in years to come.
Although the first running of the Transtasman Challenge will be in Auckland, it will be shared by Australia and New Zealand.
Talks are under way with New South Wales officials to hold the Transtasman Challenge as part of the Inter Dominion pacing final meeting in 2013, 2014 and 2015.
Harness Racing New Zealand's chief executive Edward Rennell said his board was committed to playing a role in hosting the event beyond the inaugural running.
"We have expressed interest in running it every second year in NZ, but understand NSW may wish to have it three years in a row to coincide with its hosting rights of the Inter Dominion pacing series."
"We think running it in April, a week before the Rowe Cup, will make it very attractive for the best trotters in Australia and New Zealand to make the trip to Auckland." The idea and financial support for the Transtasman Challenge came from Australian Peter Chambers, who has emerged as a key owner, breeder and sponsor of harness racing in the past two years.
"The trotters provide an outstanding spectacle and it is important we promote and support the trotting industry," Chambers said.
"This first Transtasman Challenge is a forerunner to a race I want to see become international. The trotters are our best chance to make further internationalise our sport in Australia and NZ.
"The long-term vision is for a true trotting Grand Prix circuit where horses come from the other side of the world to race our best over here.
"It is fantastic the support Harness Racing NZ and the Auckland Trotting Club have given this concept. Next year's race will be the first step towards out ultimate objective."
Chambers has hired a firm to market the Transtasman Challenge and added he was in talks with some prospective naming rights sponsors