Ed Sheeran's Dunedin fanbase has had its prayers answered this morning.

The Shape of You singer has announced he will play Forsyth Barr Stadium on the 29th of March.

Tourism Dunedin spokesman Ryan Craig said this is huge for the city.

"It's going to have to be one of the top concerts to come to the stadium, I'd say it'll probably outstrip anything else that's been here, given that he's a contemporary and current superstar globally."

Otago Chamber of Commerce spokesman Dougal McGowan said it's one of the bigger concerts to have been held at the indoor stadium. He said it's expected to pour millions into the local economy.

"These events have been anywhere between $5 [million] to $10 million of economic impact, sometimes plus depending on how long people come for and whether its over a weekend and the days that its on" said McGowan.

Dunedin Mayor Dave Cull said the concert is a great result for the city. He said it will cement Dunedin's reputation as an international centre, and not just a regional one.

There is no news yet if Sheeran will visit Larnach, Dunedin's very own Castle On The Hill.

Sheeran will also play Auckland on March 24. His last concert here was in December 2015.