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A consortium between property and development giants Leighton Properties and Mirvac have been shortlisted to develop 5.1ha of lucrative State Government land in the Perth City Link project.

In statements released this afternoon, Leighton and Mirvac and the Government confirmed the consortium had been invited to proceed to the request for proposal stage.

Leighton Properties managing director Mark Gray and Mirvac chief executive development Brett Draffen said the Perth City Link project was one of the most significant CBD developments in Australia and welcomed the opportunity to proceed to the next stage.

"The Perth City Link project … will not only resolve a barrier that has existed for 100 years to link the Northbridge entertainment area with the CBD, but also deliver a contemporary, integrated mixed-use environment accessible to locals and tourists alike," Mr Gray said.

The 5.1ha government landholding in the $3 billion Perth City Link project went on the market in September in what was hailed the most significant inner-city development opportunity in more than a century.

In a search Planning Minister John Day flagged would go international, he said 265,000sqm of floor space would be offered across eight lots within the 13.5ha precinct for a range of residential, commercial, retail and tourism facilities, including a hotel.

Mr Day said this afternoon that the Metropolitan Redevelopment Authority had undertaken a rigorous assessment of the expressions of interest received.

"As a result, the project is moving forward with a consortium made up of two highly-credentialed Australian companies," he said.

"The State Government has high expectations in regard to design and innovation, place making, access, connectivity and commercial return for the Perth City Link.

"The Leighton Properties/Mirvac consortium has successfully demonstrated the broad depth of experience and capacity required to deliver a world-class development."

It is the fifth joint project for the companies. Leighton Properties and Mirvac said they had a shared vision with the Government and their combined capabilities and experience made the consortium well placed to deliver a project of such magnitude.

"We are currently working to provide a unique and world class design outcome not only for the Perth community but also the broader WA community that includes architecture, character, ecological sustainability and transport integration," Mr Draffen said.

Mr Day said a detailed proposal was due in August, with the evaluation and negotiation process is expected to continue until early next year.

Leighton has already made its mark on Perth City Link after Leighton Properties partnered with private landowner Seven Entertainment Pty Ltd to build six new buildings on the former Perth Entertainment Centre site.

The Leighton Holdings group of companies also includes construction giant John Holland, which has the contract to sink the Fremantle rail line.

The Link involves sinking 325m of Perth's railway to open up a big tract of land for 1650 new apartments for more than 3000 residents and 244,000sqm of commercial and retail space for 13,350 workers.