The British practice will be joined by US heavyweights SOM and KPF in the multi-billion dollar project that includes the existing Penn Station, Madison Square Garden (above) and two office towers - One and Two Penn Plazas.
The developers, Related Companies and Vornado Realty Trust, had previously denied a competition had been launched for the scheme, but it is understood that a contest was held, featuring New York-based Cesar Pelli as well as the three confirmed practices (Foster aims for another massive New York scheme).
The project will see SOM's transformation of the Farley Post Office into a new train station and transport interchange called Monyihan Station, and Madison Square Garden arena effectively moved one block to the west.
Plans have yet to be unveiled, but it is thought that meetings between all parties involved will be taking place by the end of the summer.
The ambitious project confirms Foster's position as the new darling of New York. The starchitect received high praise for his Hearst Tower, and he is about to start work on the long-awaited World Trade Centre project.