It will be the first time the city has hosted the annual event since 2016.
Athletics Otago was keen to commit to the championships for one year and, as Athletics New Zealand is reviewing its hosting strategy for 2025 and beyond, the decision was made to step away from the recently adopted two-year hosting arrangement.
It will be the eighth national event across the old and new Caledonian Grounds over the course of half a century.
The announcement has been greeted with delight by Otago athletics identities.
Dunedin-based Athletics NZ lead para coach Raylene Bates said it was an exciting opportunity.
"The Caledonian Ground is situated in a picturesque spot, and the close proximity of the track to the large stand and embankment will help generate a special atmosphere for both the athletes and spectators."
Athletics Otago chairman Simon Rhodes said it was a "wonderful" chance to see New Zealand’s elite athletes in action.
"It will allow us to showcase athletics and drive participation across all age-groups and abilities, for both in-stadia and out-of-stadia events," Rhodes said.
"In short, the championships will provide a strong draw not only to engage and spectate, but also participate."
Otago’s athletes will be especially pleased to be able to run, jump and throw on home turf.
One of those stars is Paralympic javelin champion Holly Robinson, who lives and trains out of Dunedin.
"It is awesome. We haven’t had the nationals down here for a number of years and it will be a great chance to showcase our excellent stadium and facilities to the rest of the country," Robinson said.
"With our superstar able-bodied and para athletes down here in Dunedin, it will provide a big boost for the local athletics scene for what, I’m sure, will be an epic event."
The national championships will take place on March 13-16, 2025.