"I am pleased now to announce that the next World Youth day will be held in 2013, in Rio de Janeiro," the Pope told the faithful assembled to celebrate Mass at a military airbase on Madrid's western outskirts.
The crowds of young people from around the globe erupted in cheers at the announcement.
Rio will also host the Summer Olympics in 2016 and Brazil will host the World Cup in 2014.
Rio de Janeiro officials who were in Madrid for the pope's announcement said in a statement that they were eager to see the festivities come to their city.
"From an economic standpoint, it's amazing. ... The streets will be full, and the museums and sites," said Sergio Cabral, governor of Rio de Janeiro state.
Eduardo Paes, Rio de Janeiro's mayor, said the city -- with the massive Christ the Redeemer statue overlooking it -- will be the ideal host for the event.
"Upon arriving in Madrid, I was very impressed with the size of this fantastic meeting. ... On every corner, demonstrations of fellowship, harmony, ideas for building a better world. And there's no better environment than Rio, the city known to be blessed by God, to receive this event," he said. "Brazil is a country of continental dimensions, with a Catholic majority, and our city has unique scenery and welcoming people."
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