The European Tour, China Golf Association and BMW announced on Monday the creation of the BMW Masters, headed to the tour's schedule in the fall.

The BMW Masters will be staged at Lake Malaren Golf Club from Oct. 25-28.

"We are proud of many partnerships we enjoy across the world of golf, but one of the most enduring is with BMW for whom this tournament represents the third title sponsorship on the European Tour in 2012, and the 45th in total over the past 23 years since the first BMW International Open in Munich in 1989," said George O'Grady, the European Tour Chief Executive.

This event will offer a purse of $7 million and it will be one of the most lucrative tournaments on the European Tour, after the majors, WGC events and the DP World Tour Championship.

There will be an exclusive field of 78 for the championship, with most coming from the top 100 in the world rankings. There will be four players invited by the sponsors and 14 from the Chinese Golf Association.