In collaboration with the Queensland Music Festival (QMF), Mount Isa City Council is concocting an entertainment-filled event tipped to attract a record crowd.

Swingin' Utes will be held on July 20 next year to coincide with Mount Isa's 90th birthday celebrations.

Mayor Tony McGrady said the event would be a pinnacle for music entertainment in Mount Isa.

"It's going to be the biggest and best music festival the town has ever seen," he said.

"It will be a huge fiesta... just one big party."

The festival will be held at Buchanan Park and will be a free event, aimed at uniting the whole community in a colourful mix of Mount Isa, state and national talent.

A song-writing contest will become a feature of the festival preparations and local residents are encouraged to pen a song for Mount Isa to be sung by a 300-strong choir for the festival finale.

QMF executive director Nigel Lavender said they are extremely pleased to return to Mount Isa after the hugely successful Bobcat Dancing productions in 2003 and Bobcat Magic in 2005.

The show will feature Australian music legend James Morrison and a yet to be named special guest star.

Cr McGrady said it's an exciting project for the council and are happy to inject $50,000 into the funds.

"It's exciting for city council to be involved in this," he said.

"It will be right in middle of tourist season... we want to show people we have talent."

He said community involvement would be a major focus and Music Groups of Mount Isa coordinator Yvonne Moore will be busy gathering talent for the festival.

The festival will fall in the midst of tourist season and coincide with a ute muster.