Sydney racing officials say they are not trying to compete with the Melbourne spring carnival by staging the world's richest turf race at Randwick.

Racing NSW and the Australian Turf Club announced on Wednesday the $10 million The Everest would be run on October 14 fully funded by the participants.

The prize money surpasses the $6.2 million Melbourne Cup which is the world's richest 3200m-race.

It will cost $600,000 to buy a slot in The Everest which can be held or traded with a total commitment of three years required.

The race sits between the Group One Moir Stakes and the Manikato Stakes which Racing NSW chief executive Peter V'landys says is the perfect fit.

"It fits in with the Victorian spring," V'landys said.

"It is two weeks after and two weeks before those Group One races.

"It is the perfect time in Sydney with no other sports competing."

The race is the same concept as the $US12 million Pegasus World Cup held on dirt in Florida on Saturday and won by Arrogate, recently named the world's best horse.

V'landys said interest had already been strong both from Australian trainers and those overseas.

"We have consulted trainers and they are excited about the concept," he said.

He said the field size could be extended from 12 depending on the interest from connections.

The winner will receive $5.8 million, second $1.4 million, third $800,000, fourth $400,000 and fifth $250,000.

There will be a guaranteed $175,000 for horses finishing sixth to 12th.

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

"It will be fully funded by the slots sold."

ATC chief executive Darren Pearce said the race would be a major drawcard.

"Sydney racing is going from strength to strength, and The Everest furthers our goal to attract a global audience whilst providing Sydney with a massive drawcard in the spring," he said.

Racing NSW chairman Russell Balding said the race would showcase Australian sprinters.

"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," Balding said.

Australian short-course horses are recognised internationally with Chautauqua ranked the world's best sprinter for 2016.

THE EVEREST - AUSTRALIA'S RICHEST RACE

* October 14 at Randwick

* Weight-for age, 1200m

* Prize money - $10 million

* Up to 12 starters with the field made up of horses nominated by slot owners

SLOTS IN THE EVEREST

* $600,000 for a slot in the race each year with a three-year commitment from buyers

* Slots are tradeable commercial instruments and they can be sold, joint-ventured or leased, either as a package or individual slots

* $2.8 million generated from incremental wagering, sponsorship, broadcast and revenue from the race meeting to fund the balance of prize money

PRIZE MONEY BREAKDOWN

1st - $5.8 million

2nd - $1.425 million

3rd - $800,000

4th - $400,000

5th - $250,000

6th-12th - $175,000

Equine welfare fund - $100,000