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The move away from its traditional home at the town’s Fisherrow Links is aimed at creating more space for people to park and watch the display which takes place on Bonfire night, November 5.
The event was last held at the racecourse in 2011 after a row over the cost of hiring the venue saw it moved to East Lothian Council-owned land.
The cost of this year’s event was agreed behind closed doors during a meeting of Musselburgh Common Good committee this week.
At this stage it is not known whether vaccine passport restrictions will be needed at the venue which saw around 5,000 people attend in 2011.
Current Scottish Government guidance calls for proof of vaccinations before entry to any unseated outdoor event with more than 4,000 people.
A council spokesperson said discussions were ongoing about how the event would be overseen.
The popular fireworks display was moved from the racecourse in 2010 after the cost of hiring the venue rose from £16,500 to £24,000 – a move put down to rising costs of health and safety requirements.
However it returned to the racecourse in 2011 as Musselburgh councillors agreed to foot the £24,000 bill after an alternative venue proved unpopular.
It was then moved to Fisherrow Links in 2012 where it has remained until this year.
A council spokesperson confirmed funding for the fireworks event had been confirmed at the meeting.