The race - to be known as the Grand Prix of America - will make its debut in 2013 around a 3.2-mile street circuit in New Jersey which will run alongside the Hudson River, with Manhattan serving as a backdrop.
Vettel, speaking ahead of this weekend's inaugural race in India, said: "It's very exciting. In many ways it's a dream, not just for the organisation, but also the drivers.
"To have a grand prix in one of the most famous cities in the world is something special, different. And where do you reach more people than in New York? So it's great."
Lewis Hamilton echoed Vettel's sentiments, with his reaction summed up in one word - "Mega!".
The McLaren star added: "I've been waiting for a race there, which I'm sure will be able to compete with somewhere like Singapore.
"If they did it at night time that would be even better, but right now I'm massively excited.
"I really hope we get to have two grands prix in the States because there is a huge following and it is an area where we should be."
Red Bull team principal Christian Horner is hoping F1 can finally lay down roots in America. In addition to the Grand Prix of America, a United States GP is scheduled for Austin, Texas, from next season
"America is the one market Formula One has not fully penetrated, and it is such an important one to the sport," said Horner.
"By having two races in the States it can really ignite enthusiasm for the sport, and to have a street race in New York is fantastic news.
"As to why it has failed in the past I don't really know, but the United States does things differently with all its sports.
"Formula One has proved to be so popular all over the rest of the world, so by putting it in front of an American audience in two venues, that will really ignite passion and enthusiasm."
Mark Webber jokingly summed up the new situation in America when he said: "It's like buses isn't it? We get nothing there for a while, and then two come along at once."
Webber added: "Obviously, it's a testing market and time will tell in a few years as to how awesome it's going to be.
"We've clearly a phenomenal track being built in Texas, and now we have New Jersey. They will both have a very good feel to them.
"But a race in America is clearly something that has been missed, in terms of being on the world championship calendar, and to have North America complementing South America."