Image: VALERY HACHE/AFP PHOTO
Nine-time Olympic champion Bolt will headline the inaugural Nitro Athletics in Melbourne, Australia, next month, captaining the "All-Stars" in the competition.
The meet, with six teams - including Australia, China, Japan, England and New Zealand - will feature non-traditional events such as middle-distance and hurdles relays in an attempt to broaden athletics' appeal.
Coe said the new-look format across three days was exactly what the sport needed to keep fans interested.
"Athletics, in its traditional form, remains the cornerstone of the Olympic Games," he said. "And our world championships remain an incredibly strong and attractive event.
"However, we need innovation and more opportunities for our athletes to interact with fans and show their personalities. Nitro Athletics is a great example of what can be done and what needs to be done to revolutionise how we present our sport and how our fans connect with the sport and the athletes."
Coe said athletes and fans wanted to have more fun, and the team element in Melbourne was a way to achieve this.
"Athletics is a global sport with a global following, but we need events that bring back the fun, the kids and the crowds and add a different dimension to the record-setting events like the world championships," he said.
"We need brave, bold ideas that engage fans in events and across a range of platforms. The only thing stopping us is our imagination and the courage to try something new."
The Nitro series will take place at Melbourne's Lakeside Stadium on February 4, 9 and 11.