Prince Harry has appeared alongside pop star Kylie Minogue to announce that Sydney will host the 2018 Invictus Games – an international Paralympic style sporting event for injured veterans.

The royal, who has been a central force behind the games since its inaugural event in London in 2014, made the announcement via video message, while new girlfriend Meghan Markle is thought to have stayed home.

The short clip sees Harry answer his phone as it rings to the sound of Minogue's 1988 hit I Should Be So Lucky.

He says: "Hi Kylie, good timing, the 2018 Invictus Games is coming to Sydney, can I guarantee the Aussies are going to bring it?"

She replies: "Hey Prince Harry, listen, we're stoked the Invictus Games is coming to Sydney, but you don't need to tell the Aussies to bring it - it's guaranteed, no worries!"

The decision to hold the games in Australia marks the third time they will be held abroad, having been welcomed in Orlando, America this year, and already arranged for Toronto in 2017.

More than 500 competitors from 17 nations will compete in Australia at venues including Sydney harbour.

"The Invictus Games has shown us what can be achieved when wounded, injured and sick servicemen and women rediscover their fighting spirit through sport," continues the 32-year-old prince in the video.

"In London and again [in] Orlando, we came away moved by the tales of courage that got each competitor through their rehabilitation to the start line of their chosen sport.

"Tens of thousands of people packed stadiums and millions more watched at home. We were all inspired.

"We have raised the bar higher with each successive Games, and I know that Toronto are planning an incredible event when they host the Games in September."

The Prince goes on to say he is confident that Sydney will continue this progress as a city "known all over the world" as "sporting mad" with a "strong military heritage".