The Government of New York has approved Audi of America’s application to demonstrate and test its autonomous vehicle in the state.
Last month, the state began accepting applications from companies wanting to test or demonstrate self-driving vehicles on public roads.
The state’s legislation included in the financial year 2018 budget enables enable companies to test their autonomous technology on state roads through a year-long pilot programme.
Audi of America was the first company to submit the application to test its autonomous technology. It will also be the first car manufacturer to demonstrate and test its vehicle in the Albany city on 13 June.
The company has selected New York as a test area for its driverless vehicles because the state has a stringent environment for automated vehicles.
New York Governor Andrew Cuomo said: "Autonomous vehicles are a major part of the future of the automotive industry and this pilot programme will help ensure New York continues to be a hub of innovation and cutting-edge technology.
"This emerging technology has the potential to decrease accidents and save lives on our roadways, and with this approval, we are one step closer to a safer and stronger New York for all."
The company is planning to test vehicles considered to be in Level 3 by Society of Automobile Engineers (SAE), which implies that it can undertake hands-free driving at posted highway speeds but needs a person to take over if necessary.
During the demonstration, two trained engineers will be present in the vehicle to monitor the system, as well as to ensure safety.
The Level 3 vehicle has already logged thousands of miles on highways in the US.
Audi has received approvals from the New York State Police as well as from the Department of Motor Vehicles (DMV).
New York State Department of Motor Vehicles (DMV) executive deputy commissioner Terri Egan said: “These first tests and demonstrations that will take place in New York truly are the building blocks of safer, more flexible and accessible means of transportation.”