The American architect, who was a founder of the Congress for a New Urbanism, will design the 10,000-person town for the Highlands.
The developer Moray Estates has commissioned Duany after being impressed by his 'design by charette' approach to masterplanning.
The commission represents the first time the controversial designer - a long-term ally of Poundbury masterplanner Leon Krier - has won a commission in the UK.
The new town, planned for south of the Highlands town of Tornagrain, will include 5,000 new homes, schools, shops and other services on the 350ha site.
When complete, it threatens to be Europe's largest example of a New Urbanist settlement.