A $3million business Tech Hub is one step closer to being set up in Wellington.

A business case for the creation of the hub will be put to Wellington City Council on Tuesday and if passed would be up and running from 1 July on Tory St.

Mayor Celia Wade-Brown said the hub would connect hi-tech rapid-growth ventures, investors, social enterprises, international visitors, tertiary institutions, government and established businesses working on new ideas.

Councillor Jo Coughlan, chair of the Economic Growth and Arts Committee said the hub would significantly benefit the city by raising its profile as a tech capital.

During the first stage 160 desks would be added and a second phase would see a 1200sqm Google-type campus created underneath the hub, she said.

The hub would put the capital on the map as a place for tech business.

It would leading to greater levels of innovation and GDP growth in Wellington, she said.

She understood it would be the biggest hub of its kind in the country.

"It will draw overseas investment, bring talent to the city and we will see businesses collaborate to become successful down the track."

Small business could share resources such as commercial graded equipment and 3D printers.

"They won't need the capital outlay and this will enable businesses to scale up and compete globally," she said.

At the end of last year, Biz Dojo was selected as the preferred partner to operate the Tech Hub.

The hub would contribute to council's Economic Development Strategy target of creating 10,000 new jobs over five years by 2016 and is a forerunner to the development of a tech precinct.

If approved by council, the hub would be funded from the Wellington Economic Initiatives Development fund.

Council would contributes up to a maximum of $3.2 million over three years.