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Bali governor I Made Mangku Pastika says Denpasar would be the host for the event, following a meeting with a co-chairperson of the Miss World Organisation, Julia Morley.
More than 130 beauty queens across the world are expected to take part in the event.
"Bali will try to improve herself to get ready ahead of the pageant," Pastika said, quoted by kompas.com.
Bali has been the subject of criticism of late for its failure to tackle pollution and traffic congestion.
The governor said he hoped that hosting the event would boost Bali’s reputation and tourism sector.
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