After so many speculations about the name, the government of Andhra Pradesh is decided to name its new capital city as Amaravati. Though there were numerous permutations & combinations possible, the legislative members of TDP have unanimously voted for Amaravati, if the sources are to believed. Also known as Amareswaram, the name has a lot of history and worldwide recognition attached to it.Amaravathi means the city of who have no death i.e., Gods.
Located on the banks of Krishna river, Amaravati was once the capital of Satavahanas from 2nd century BCE to 3rd century CE. Amaravati has been a famous pilgrimage center to both the Hindus and Buddhists since many centuries. Government of AP has already finished the acquisition of more than 90% of farm-lands in and around Amaravati. The development of the capital region will be initiated once the design blue-print gets finalized. 
Names like Thullur and Guntur were also considered in this long selection process. But, being an ardent follower of Vasthu and Dharmas, the chief minister of AP – Chandrababu Naidu has been firm on naming the new capital as Amaravati and an official announcement will be made very soon to clear off the air. So, the great past of Telugu people will be paving the way for future. –
Amaravati is an internationally popular name and it is likely to attract Buddhist tourism from across the globe. Dhanyakataka, present Amaravathi, was the capital of the Satavahana dynasty that ruled the Deccan from the 1st to 3rd centuries CE.
See more at: http://www.gulte.com/news/37152/Its-Official-Amaravati-The-New-Capital-of-AP#sthash.NTUrqvCO.dpuf
