The Paris Masters will move to La Defense Arena from its long-standing Bercy home in the capital in 2025, the French Tennis Federation (FFT) announced on January 29.
Its new base, an indoor arena opened in 2017 in the western suburbs of Paris, is also the home of French Top 14 rugby club Racing 92.
The venue will be able to accommodate five tennis courts and welcome up to 23,000 spectators, a considerable increase on Bercy's 16,800 capacity.
Organisers have signed a 10-year contract to stage the event at La Defense Arena, a decision made in order to comply with ATP requirements for its biggest tournaments.
The end-of-season Paris Masters, one of the nine main tournaments on the ATP Tour, has been played at Bercy since 1986. It is the only one to be held indoors.
"It is one of the ATP's most prestigious tournaments, and we are proud that over the years it has become a key event on the French and international tennis scene," said FFT president Gilles Moretton.
ATP chairman Andrea Gaudenzi welcomed the announcement, which came after months of speculation over a possible relocation.
"France is a key nation for professional tennis and today's announcement further strengthens one of our biggest events on the ATP Tour," said Gaudenzi.
"We are continually looking for opportunities for our tournaments to grow, and to provide better experiences for our players, and most importantly the fans."