Starting from May 2010 the move will see an additional investment of US$75 million spent in the plant.
UK and other right hand drive markets will continue to be serviced by Hyundai's Chennai plant in India.
The move will also see Izmit's production capacity raised to 100,000 units per annum, with 80,000 devoted to the i20, while also creating 500 more jobs. The plant currently produces the Accent and Matrix MPV.
"The European vehicle market is one of the most discerning in the world," said Hyundai Motor Company Australia's Director of Sales and Marketing Kevin McCann. "The expanded capacity is a result of the i20's success in Europe. This should free up assembly lines for Australian specification cars and will enable us to move closer to confirming launch plans for Australia."