SYDNEY (AFP) - Sydney is set to host the world's richest turf race with A$10 million (S$10.71 million) in prize money, surpassing the Melbourne Cup for the high-stakes honour, it was announced on Wednesday.

Coined "The Everest", organisers claim it represents "the pinnacle" of thoroughbred racing with the 1,200m sprint involving just 12 horses, Racing New South Wales said.

The inaugural race will be run on October 14 with buyers from Australia and around the world invited to purchase a A$600,000 spot in the event, which can then be traded prior to the entry date.

"The Everest will be a game-changer for racing in Sydney and provide a stage for showcasing the best Australian sprinters against leading international contenders," said Racing NSW chairman Russell Balding.

It will eclipse the winnings from Australia's iconic Melbourne Cup, where tens of thousands of punters gather in November to watch world champion thoroughbreds race for A$6.2 million.

The Dubai World Cup and newly-introduced Pegasus World Cup in the United States carry more prize money, but they are raced on dirt.

The Everest will be run at Sydney's Royal Randwick racecourse and be held annually with the winner taking home A$5.8 million and second place A$1.42 million. The rest of the cash pool will be split between the other finishers.