The Federal Government has announced it will pay $21.6 million for the science fiction film 20,000 Leagues Under The Sea to be made in Australia.

Prime Minister Julia Gillard and Arts Minister Tony Burke say the film, which will be produced by Walt Disney, will create more than 2,000 local jobs.

"We're making sure that one of the most highly skilled industries that you can find in the world continues to be in Australia," Mr Burke said.

"With the high dollar... we might've [otherwise] seen a whole lot of these films depart our shores."

Ms Gillard said securing the shoot was a "huge coup" for the local film industry.

"The filming will give Australian talent the opportunity to work with some of the best screen professionals in the business - both in front of the cameras and behind the scenes," she said in a statement.

Casting and locations are yet to be finalised.

The film will be based on the Jules Verne novel of the same name, which was also made into a 1954 film starring Kirk Douglas.

It follows a naval ship expedition across the world's oceans in search of a mysterious sea monster.

There are reports that David Fincher, director of Fight Club and The Social Network, is in line to direct the movie, with Brad Pitt to star as the film's hero Ned Land.