Amaravati will be Andhra Pradesh's new capital, chief minister Chandrababu Naidu announced today. 

The decision was taken by the state cabinet, he said.

"In today's meet we decided to name Amravati as the new capital of Andhra Pradesh," Mr Naidu said.

Amaravati, which derives its name from Amareshwara Temple located in the historic village in Guntur district, is located on the banks of river Krishna.

The capital is likely to have three rings -- the core capital region, capital area and a larger capital region.