Tiger Airways will resume flights to Alice Springs in April.
There will be four flights a week on each of two routes, between Sydney and Melbourne and Alice Springs.
The airline suspended services between Alice Springs, Adelaide and Melbourne in mid-2011.
Tiger Airways commercial director Carly Brear says the airline could not ignore the overwhelming demand to return to the region.
"The one thing I should say is, thank you to the people of Alice Springs," she said.
"This is absolutely a case of the people have spoken.
"We were inundated through Facebook and various other mediums from people who lived in the area, who were just absolutely desperate for the return of low-cost services.
"Quite frankly, the demand was just far too high for us to ignore." Territory Tourism Minister Matt Conlan says negotiations have started with Tiger Airlines to lobby for services to Darwin.
"I would certainly love to see as much airline capacity as we possibly can into all parts of the Northern Territory," he said.
"I think we just take one step at a time but Tiger are well aware of the Northern Territory Government's desire to see increased capacity or additional air services into Darwin.
"They are acutely aware of that."