Hawass said that many foreign expeditions searched for this city and never found it.
People continued to use the "Golden City" during Amenhotep III's co-regency with his son, Amenhotep IV (who later changed his name to Akhenaten), as well as during the rule of Tut and the pharaoh who followed him, known as Ay.
Known as Aten, it is being called the largest find of an ancient city in Egypt and is being hailed as the second most important "archaeological discovery since the tomb of Tutankhamun". The team found this cartouche all over the place, including on wine vessels, rings, scarabs, colored pottery, and mud bricks, which confirmed that the city was active during the reign of Amenhotep III, who was the ninth king of the 18th dynasty. Mud bricks bearing the seals of Amenhotep III were also found.
On Thursday, the Egyptian Ministry of Tourism and Antiquities said that an expedition led by Hawass, the former minister for antiquities affairs, had discovered a city on the west bank of the Nile near Luxor. The statement adds that the city is in good condition of preservation, with nearly complete walls and rooms filled with tools of daily life.
Now, seven months after the dig started, several of the city's neighborhoods have been uncovered.
"The archaeological layers have laid untouched for thousands of years, left by the ancient residents as if it were yesterday", the team's statement said.
The excavation area is sandwiched between Rameses III's temple at Medinet Habu and Amenhotep III's temple at Memnon.
Archeological discoveries are seen in Luxor, Egypt, in this undated handout photo.
"There's no indication that I am aware of that this town section had been found before, although clearly it represents a new part of an enormous royal city, that we can appreciate far more now", she said.
"This is a very important discovery", said Peter Lacovara, director of the US-based Ancient Egyptian Heritage and Archaeology Fund.
As such, along with the famed settlement of Deir-El Medina, the city's discovery can provide archaeologists with a glimpse of daily life activities in ancient times. Also discovered, was the burial of a human being with arms stretched out to the side and the remains of a rope wrapped around the knees.
Only further excavations of the area will reveal what truly happened 3,500 years ago.
He said he believes that the city was "the most important discovery" since the tomb of Tutankhamun was unearthed in the Valley of the Kings in Luxor almost fully intact in 1922.
Work is underway and the mission expects to uncover untouched tombs filled with treasures.