The Tasmanian and NSW governments are joining forces to commence a study on medicinal cannabis.
The two states will sign a Memorandum of Understanding on Thursday, with both states to work on clinical trials, research and cultivation of the drug.
Tasmanian Premier Will Hodgman said the MoU recognises Tasmania's research strengths and proven track record in regulating poppy cultivation.
The NSW government has established the Centre for Medicinal Cannabis Research and Innovation to help progress cannabinoid research.
It has announced three clinical trials targeting children with severe, drug-resistant epilepsy, adults with terminal illness and adults with chemotherapy-induced nausea and vomiting.
The Tasmania and NSW announcement follows legislation introduced in Victoria this week to allow medicinal cannabis to be grown and manufactured in the state.
