Tasmania is set to grow cannabis for use in medicinal marijuana trials, under a deal with the New South Wales Government.

NSW Premier Mike Baird and Tasmanian Premier Will Hodgman will sign a Memorandum of Understanding on Thursday - outlining the level of cooperation for clinical trials, research and the framework for growing cannabis crops for medicinal and scientific uses.

The moves comes almost two months after the Federal Government announced they would legalise the growing of marijuana for medical purposes and a day after Australian company AusCann announced they will begin planting trial crops of marijuana on Christmas Island ahead of a planned listing on the Australian Stock Exchange in early 2016.

Tasmania will not be contributing any funding to the program and specific details about the trial - such as the location of the crops and how much marijuana will be grown - are still unknown.

However, Premier Hodgman said the MoU paves the way for Tasmanians to participate in the trial.

The island state's success in regulating poppy cultivation for medicinal uses is believed to be a key reason New South Wales have chosen them as a partner in the program.

"These matters concerning the ability to cultivate the crop and to ensure a safe transition into New South Wales will be determined by our health department and other experts," Mr Hodgman told The Examiner .