WA Science Minister Dave Kelly on Monday released a report outlining the case for the federal agency to be based in the west.
Basing the new national space agency in Western Australia would help diversify its resources-heavy economy.
The state's geographic advantages and the already thriving space industry make WA an intelligent choice, according to the ACIL Allen report.
Minister Kelly said the move west would not only generate jobs, it would allow the national space agency to collaborate with existing projects already in WA.
"Growing the space industry in WA will create local jobs, provide more opportunities for our local businesses and help diversify the WA economy," he said in a statement on Monday.
WA is already home to the Australian arm of the global Square Kilometre Array radio telescope project and has defence space facilities in the state's north.
The new national space agency was announced in the federal government's May Budget.
