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The long sporting rivalry between Australia and England will enter a new phase next year when the two nations lock horns in athletics.

The two countries will square off at a head-to-head meet at a specially built street track in Newcastle, northeast England in the first of a series of planned competitions in the lead up to the 2012 London Olympics.

The Australian team will be spearheaded by Beijing Olympic pole vault champion Steve Hooker (pictured) and 100 metres hurdles silver medallist Sally McLellan.

"There has always been a strong rivalry between England and Australia, in athletics and all other sports," Hooker said.

"The whole concept is fantastic, the country v country format doesn't happen that often in athletics and to have this in the lead up to London 2012 is great news."

The meet will be held at the same time as Australia's cricketers are touring England for the Ashes and competitors from both countries are hoping they can cash on their rivalry by luring other fans to track and field.

"There are masses of Aussies in this country and with their fervent patriotism and desire to beat us at absolutely everything, I'm sure they'll come along in big numbers to spectate," England sprinter Jeanette Kwakye said.

"This could really start off a new rivalry between us, just like there is for the cricket and the rugby. I'm definitely interested."

Reuters