A "historic" deal to transform Western Sydney into "an even greater economic powerhouse", complete with an airport city, an aerospace institute and a North-South rail link, has been unveiled.

Prime Minister Malcolm Turnbull said The Western Sydney City Deal, made in partnership with the State Government, would see a trial of 5G mobile technology, rapid bus services introduced and 200,000 jobs created.

Mr Turnbull, along with New South Wales Premier Gladys Berejiklian, announced the 20-year plan, which has been made by three levels of government.

Speaking at Werrington Park Corporate Centre, Mr Turnbull said Western Sydney was undergoing enormous change.

He said at the "heart" of the project was the Western Sydney airport which would be "a catalyst for the 200,000 jobs".

The Federal Government approved plans to build a second Sydney airport in the suburb of Badgerys Creek in 2014 and it is due for completion in 2026.

"This city deal is a historic change for the better for Western Sydney.

"Western Sydney is undergoing enormous change ... change that in the coming decades will continue to turn this region into an even greater economic powerhouse than it is today."

The Western Sydney deal" A North South Rail Link from St Marys to Western Sydney Airport

A North South Rail Link from St Marys to Western Sydney Airport An airport city on Commonwealth-owned land at North Bringelly

An airport city on Commonwealth-owned land at North Bringelly An Investment Attraction Office to attract investment to the Western Parkland City

An Investment Attraction Office to attract investment to the Western Parkland City New planning regime for Western Sydney to cut development costs and boost housing supply

New planning regime for Western Sydney to cut development costs and boost housing supply A $150m Western Parkland City Liveability Program to deliver community facilities

A $150m Western Parkland City Liveability Program to deliver community facilities New STEM-focussed education facilities to train skilled workers needed for the airport city

New STEM-focussed education facilities to train skilled workers needed for the airport city A plan to embed smart digital technology in Western Sydney



The plan includes an "Aerotropolis" on federal land at North Bringelly; STEM education facilities to train workers needed for the Aerotropolis; a plan to introduce smart digital technology, and $150 million to deliver community facilities.

Also announced was an Investment Attraction Office to attract investment to the Western Parkland City.

"When people stand in Parramatta, they won't be looking East for the best jobs, they'll be looking West for the best jobs," Ms Berejiklian said.

"We've put aside the politics and said what is in the best interest of our citizens?"

The federal and state governments worked with the mayors and councils of Camden, Campbelltown, Liverpool, Penrith, Wollondilly, the Blue Mountains, Hawkesbury and Fairfield.

The NSW Government also plans to establish rapid bus services from the centres of Penrith, Liverpool and Campbelltown to Western Sydney Airport before it opens.

Federal and state Labor opposition said they welcomed the Turnbull Government's plan to "build part of the new Western Sydney Rail Line project", which they said they first proposed in 2015.

State Opposition Leader Luke Foley said the Labor Party would deliver the rail link faster than the Government because "it would not build the Northern Beaches Mega Tunnel" and it "would not waste $2.5 billion on stadiums".

"Our focus is Western Sydney,'' Mr Foley said.