Gladys' cosmic plans for Sydney

Tom Rabe

NSW Premier Gladys Berejiklian is lobbying the federal government to build Australia's first space agency in Sydney, which she says is the nation's "technology capital".

Innovation Minister Michaelia Cash will announce in Perth on Monday initial funding of $15 million to get the agency off the ground on July 1.

Ms Berejiklian has tweeted the space agency should be located in her home state.

"Australia's space agency should be hosted by Australia's technology capital... NSW has The Dish and we should be the home of space innovation," Ms Berejiklian later said in a statement to AAP.

The federal government is setting up the agency to capitalise on the $420 billion aeronautical industry and create thousands of hi-tech jobs, with a review forecasting the industry will be worth $12 billion by 2030.

It will be headed by former CSIRO boss Megan Clark, who said Canberra was shaping as an early favourite for the agency's headquarters.

"With the need to engage internationally and also to coordinate nationally, and part of that activity, certainly, is best to be centred in Canberra," Ms Clark told the ABC.

AAP understands the NSW government will attempt to link its bid for the headquarters with Sydney's new "Aerotropolis" which is being built around the new Badgerys Creek airport.

The premier will host an Aerotropolis investor forum in Western Sydney later this month, hoping to attract international investment in the development.