Danny Clark, 50, advised race organisers yesterday he would return from Queensland next month to ride in the race.
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The International Cycling Classic carries first prize of $10,000 and has already attracted interest from sone of Australia's best cyclists.
Commonwealth Games gold medallist Stuart O'Grady has already been confirmed a starter and Tour De France green jersey winner Robbie McEwen has shown interest.
Race director Leigh Kerrison said he was excited that Clark had entered the 80km criterium.
"Even though he's 50 years of age Danny will still make it hard for the other riders if he can get a break," he said.
Two years ago Clark won a stage of the Tour of Tasmania and criterium racing was one of his specialities during the height of his career.
Clark now lives in Queensland and has been riding in Europe in recent weeks.
The Launceston International Cycling Classic will be held on Friday, December 27 on a 2.4km circuit around the streets of Launceston starting at 6.45pm.
With the support of the Launceston City Council the Classic will feature a series of dining and cultural activities for families and sports fans alike helping bring a European racing experience to the city.
Organisers hope to attract a field of 150 and entries will be taken up until a week before the race.
Kerrison said details of the race had been widely distributed throughout Australia.