Exact details have yet to be finalised but the Cork Motor Club has applied for a special licence to stage the event on the former Kinsale Road landfill on May 30.
Event organiser Finian Toomey said the RallySprint Competition, which is being supported by the city council and Bishopstown Lions Club, has the potential to attract up to 10,000 spectators.
Profits from the event will be donated to the Marymount Hospice, he said.
The Motor Club also hopes the rally will become an annual event, providing a major tourism and economic boost for the local economy.
The Kinsale Road dump ceased landfilling operations last July after almost half a century.
An estimated three million tonnes of waste were dumped on the 150-acre site since it opened in 1965.
The civic amenity operations, including recycling, composting, timber recovery and electrical equipment recycling, are operating as normal.
Most of the vast site has been capped and landscaped as part of city council plans to transform it into a Phoenix Park-style public park.
The park will eventually feature playing pitches, an all-weather area to host concerts, wildlife walks and an exercise area dubbed “cardiac hill”.
A tarmac road has been built around the boundary of the site and the Motor Club estimates it can use about 3.5 kilometres of it for the RallySprint.
It features tight turns and challenging brows which should provide a testing high-speed circuit as well as plenty of thrills for spectators.
Some of the country’s top drivers will be invited to take part, driving some of the sport’s most powerful rally cars. Ordinary club car rally drivers will also compete.
They will set off at 20 or 30 second intervals in a time trial or mini-special stage-style event.