The International Sailing Association says around 30 vessels will be visiting Falmouth for the event.

It had been feared that Falmouth would lose out to St Malo because of the lack of berthing in its docks.

The fleet will race from there at the beginning of September 2008 to Port of Aveiro, in Portugal, before a second race to Funchal, Madeira.

"Falmouth has played host to the international Tall Ships fleet before and now has a permanent organisation in place to welcome sail training ships," said Mike Cox, of Carrick District Council.

"Hosting the fleet for the Funchal 500 Tall Ships Regatta will serve to strengthen this activity. We are delighted with the decision."