Researchers dealing with flood hazard and risk assessment typically refer to available in-situ gauging stations for the calibration and validation of hydrological and hydrodynamic (HD) models. However, lack of dense gauging data such as stage-discharge relationship (rating curves) results in higher uncertainty in hydrological studies. The multi-mission satellite altimetry observations are capable since long time to monitor continental water bodies at regular interval. In this study, combined use of hydrodynamic model and satellite altimetry data has been exploited for establishing virtual gauging network in flood-prone sparsely gauged river basin. The virtual gauging stations were established at locations where ground tracks of various altimeters (Jason-2/3, SARAL/AltiKa, and Sentinel-3A/3B) cross the river channel. Rating curves were generated at these virtual stations using calibrated and validated HD model. High agreement between the simulated and altimetry-based water levels at virtual stations showed the potential of satellite altimetry data for the multi-site validation of HD model and constructed rating curves. The availability of water level time series and rating curves at multiple virtual locations in addition to existing in-situ physical gauging stations provides an opportunity to expand gauging network in sparsely gauged basin. Thus, the proposed framework may open new perspectives for enhancing river flow dynamic studies considering upcoming satellite missions like SWOT which will ensure more observations in future.