Signed by Prime Minister Malcolm Turnbull, Premier Will Hodgman and Launceston mayor Albert van Zetten, the deal is the second in Australia to be signed.

The first milestone payment is expected in August with major projects to include the University of Tasmania relocation and $19.4 million support for the City Heart project.

The projects are expected to deliver more than 480 local jobs and apprenticeships, 225 university positions and the capacity for 10,000 extra student places.

Mr Turnbull said the City Deal will maximise Launceston’s potential through more than $280 million in investment across all three levels of government and the University of Tasmania.

The five-year plan would build on the city’s strengths, said Mr Hodgman said, with focus on Launceston’s heritage, family-friendly community, unique natural environment, high quality university and research sector.

Alderman van Zetten was welcoming of the City Deal’s emphasis on delivering jobs and growth and shaping a vibrant, confident city. 

Further details on Launceston’s Deal are set to be announced on Thursday.

The first deal was delivered in Townsville in Queensland and encompassed a 15-year strategic plan.

It was signed in December with the implementation planning phase underway, including community and local partner engagement.

The last city to receive a deal will be Western Sydney.