The ACT Government has unveiled plans to roll out Australia's largest free public wireless internet network in Canberra.

The $4.4 million digital action plan for Canberra aims to create a networked 'smart city' and help local businesses deal with the impacts of the Federal Government's predicted public service cuts.

It includes the rollout of free public wi-fi in Canberra's CBD and on ACTION buses from the second half of this year.

Wi-fi will then be fitted in Canberra's other town centres and commercial sites, making it Australia's largest continuous, free, outdoor public network.

"The Canberra community told the Government that they want to see a city centre with character, one that provides a real opportunity for people to get together with friends and family, a place that they are proud to call their city centre," Chief Minister Katy Gallagher said.

Garema Place will also be developed into a centre of digital innovation with a dedicated digital space and digital screen.

"The space will create a new forum for the meeting of creative minds and creative digital ideas in the city," Ms Gallagher said.

"It will be a visible reminder of Canberra's excellence in the digital world and another illustration of contemporary urban development in the heart of the city."

Under the plan, there will be a new panel to receive digital innovation pitches for projects to be considered by the government.

Digital workshops will also be run to help local businesses adapt to the digital economy, and there will be $225,000 in grants for training through targeted private sector internships.

"It is crucial that the government provides new opportunities for business to engage with new markets and develop new customers in a modern and dynamic city," Ms Gallagher said.

Canberra Business Council CEO Chris Faulks says the ACT Government has put forward an exciting package for Canberra.

"We recognise that we've got all of the elements that can position us as a smart city and by just pulling some of those together we can really move ahead," she said.

"Free wi-fi, all of those things that people overseas are just taking for granted now, we need in this city."