The federal government has signed a City Deal with Adelaide with the development of an innovation and technology precinct on the old Royal Adelaide Hospital site as its centrepiece.
Prime Minister Scott Morrison and Premier Steven Marshall signed a memorandum of understanding in Adelaide on Wednesday with funding arrangements to be negotiated next year.
But the commonwealth has already allocated $41 million to establish the Australian Space Agency on the site to form the heart of its "innovation ecosystem".
Cities Minister Alan Tudge said the decade or more long deal with Adelaide would be one of the best in the nation.
"Because it's centred on this precinct that will become one of the greatest hubs of innovation in Australia," he said.
"It will drive the jobs of the future, so there's opportunities for more South Australians to work here and to live here.
"It will be a real driver for growth, for livability, for culture in this state and make Adelaide an even better place to live."
The federal government has previously signed City Deals with Townsville, Launceston, Western Sydney, Darwin, Hobart, Geelong and Perth.
