We know that equation of circle having centre $(h, k)$ and radius $r$ is
$(x-h)^{2}+(y-k)^{2}=r^{2}$.
Here, centre $=(-a,-b)$ and radius
$=\sqrt{a^{2}-b^{2}}$
$\therefore $ Required equation of circle is
$(x+ a)^{2}+(y +b)^{2} =\left(\sqrt{a^{2}-b^{2}}\right)^{2}$
$\Rightarrow x^{2}+a^{2}+2 a x +y^{2}+b^{2}+2 b y=a^{2}-b^{2}$
$\Rightarrow x^{2}+2 a x +y^{2}+2 by+2 b^{2} =0$