Nine-time Olympic champion Bolt will headline the inaugural Nitro Athletics in Melbourne next month, captaining the 'All-Stars' in the competition.
The meet will feature six teams -- including Australia, China, Japan, England and New Zealand -- and feature non-traditional events such as middle-distance and hurdles relays in an attempt to broaden athletics' appeal.
IAAF president Coe said the new-look format across three days was exactly what the sport needed to keep fans interested.
"And our world championships remain an incredibly strong and attractive event.
"However we need innovation and more opportunities for our athletes to interact with fans and show their personalities.
"Nitro Athletics is a great example of what can be done and what needs to be done to revolutionise how we present our sport and how our fans connect with the sport and the athletes."
Coe, who has been pursuing a reform agenda since becoming president in 2015, said athletes and fans wanted to have more fun, and the team element in Melbourne was a way to achieve this.
"We need brave, bold ideas that engage fans in events and across a range of platforms. The only thing stopping us is our imagination and the courage to try something new."
The meet will involve 24 athletes, both men and women, with all eyes on Bolt who will kick off preparations for what is expected to be his final major competition, the world championships in London in August.
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