The signing of the deal is expected within weeks but the length of the deal, detailed by Launceston mayor Albert van Zetten on Thursday, is two-thirds shorter than the deal created for Townsville.

“The implementation phase of the Launceston City Deal is five years, with progress monitored annually and reviewed after three years,” Mr Taylor said.

“All parties agreed that five years was the most appropriate timeframe for City Deal commitments and all three levels of government are keen for accelerated action to stimulate the regional economy.”

The Assistant Minister said the federal government had been working closely with the City of Launceston and the Tasmanian state government to finalise the deal ahead of schedule.

“The City Deal builds on the major investments that are aimed at revitalising Launceston and growing the city’s economy including the relocation and expansion of Launceston’s University of Tasmania campus, rejuvenating the CBD as part of the City Heart Project and creating a new National Institute for Forest Products Innovation Hub,” he said.

Treasurer Peter Gutwein said the deal, which was close to being finalised, would provide a long-term strategic plan for significant development in Launceston.

“It will provide benefits for the whole region, as well as support for significant infrastructure upgrades around the city,” he said.

“Importantly, it will also outline the next steps to address the management of the Tamar estuary and water and sewerage infrastructure in Launceston.

The City Deal will map out Launceston’s future and will compliment and build on the university project at Inveresk.”

Launceston is one of only three cities in Australia to have been included in negotiations in the City Deal program.