The humanitarian migrants will arrive in Armidale over six months from February next year.
The announcement is not part of the 12,000 places for Syrian and Iraqi refugees allocated by the former Abbott Government, which have already been filled.
Social services minister Christian Porter announced the new regional settlement site in Armidale on Friday, joined by Nationals leaders Barnaby Joyce, whose electorate centres on the town.
"This will be a major kick into the Armidale economy," Mr Porter said.
"The Indigenous community have been fantastic, the business community have been amazing and everyone realises that this is a two-way street where there are benefits on both sides."
The move comes following long-term advocacy from Armidale’s local council, which two years ago voted unanimously to accept Syrians fleeing the country's civil war.
Herman Beyersdorf, who was major of Armidale Council before it was amalgamated and placed under administration, said the community was well-placed to accept refugees.
"Armidale - and we’re very proud of this - is a very multicultural city," Mr Beyersdorf told SBS World News.
He said the town has already accepted some refugees from the Middle East and South Sudan in recent years.
The regional city has "more than enough" housing, good schools, and a TAFE and a university that offer ESL classes, he said.
Services to help the refugees settle in will be provided by Settlement Services International, under a contract with the Department of Social Services.
Government confident refugees will find jobs on farms
The refugees could help fill labour shortages on farms around the New England region, according to the government.
"What we do find with humanitarian refugee entrants is an amazingly willingness to work, particularly associated with agricultural industries, where we actually find it hard to fill jobs at the moment," Mr Porter said.
Some could find work on a large tomato farm in Guyra, about a 30 minute drive from Armidale, according to Mr Beyersdorf.
He said the company already employed a number of foreigners, including some Pacific Islanders on bridging visas.
"I think they’ll be absorbed reasonably easily," Mr Beyersdorf said.
Barnaby Joyce also cited the Guyra tomato factory as a potential employer, while Mr Beyersdorf said others could be employed at the local hospital or the university.
