Hello out there.

Here is the story:

I have bought a domain name. e.g test.org from godaddy.

I have create a hostname www.test.org in my godaddy account to connect the domain name with my web server's IP.

When you visit www.test.org browser reads files from /var/www

Now i have created a new dir in /var/www called news (/var/www/news/) and i want to create a subdomain news.test.org and when you type it on the browser to read files from /var/www/news without the URL be changed like www.test.org/news. I want the url stay as news.test.org

Is something like that possible ?

Thank you.

Yes, create an entry at Godaddy that points news.test.org to your web server.
On your server configure apache to use NameBased virtual hosting and configure a virtual host to use /var/www/news as the document root.

However, if you have your main host set to use /var/www as the document root then www.test.org/news will (by default) also show the content from the /var/www/news folder.

Godaddy has two options. Either to create a subdomain that redirects to a specific url or you can add another one host except of the www.
What entry to create so ? Can you be more specific because im a little new on these ideas.
Thank you!

Oh, sorry, my mistake, I had (wrongly) assumed you had control over your own webserver rather than using a GD hosting account.

What does GD support / docs say to do?

Hmmm there is a confusion . The web server is mine (at home with static IP). The domain is at GD. So for www.test.org i have create a hostname in GD account and connect it with the static IP of my server. The problem is that if i create a subdomain (news.test.org) to redirect to the /var/www/news , the url when you write new.test.org and press enter it becomes www.test.org/news and it doesn't stay news.test.org. The question is if its possible, after pressing enter the url to stay as it is (news.test.org).

yes, see my first reply. ignore godaddy redirection create an A record for news. test.org pointing to the same IP as your Web server and use namebased virtual hosts to serve the content.