"I am pleased to announce the 2010 G8 Summit will be held in the heart of the Muskokas in Ontario's glorious cottage county," he said.

Harper told reporters the international event should pump $300 million into the Muskoka area, which is represented by Conservative Health Minister Tony Clement.

"The 2010 summit will provide long and short-term economic benefits for the region and the province, and it will be an exceptional opportunity for Canada to advance its values and interests on the world stage," he said.

The last G8 held in Canada was in Kananaskis, Alberta in 2002.

Harper told reporters the summit will be a "tremendous opportunity to promote Canada's values and interests, to advocate for open markets and trade opportunities."