The move will see the 162-year-old prestigious university establish its second campus, with phase one expected to be completed by 2030.
By 2050, four million people are expected to call Western Sydney home, with Parramatta now the third largest economy by GDP in Australia, behind only Sydney CBD and Melbourne.
Premier Gladys Berejiklian said bringing the top-tier university to Western Sydney was likely to attract more than 25,000 students.
“The University of Sydney has the academic and reputation excellence to anchor this world-class education precinct, with co-located health facilities and ground-breaking medical research,” Berejiklian said.
Another major project under way is the state government’s $1 billion Westmead Hospital redevelopment, which is pegged for completion in 2020.
Earlier this year, four universities – Western Sydney University, University of Newcastle, University of NSW and University of Wollongong – signed on to develop a “world class” university in Western Sydney’s Aerotropolis.
Health Infrastructure NSW and UrbanGrowth NSW Development Corporation will now lead a 24-month exclusive negotiation period with the University of Sydney with community feedback sought during the masterplanning process.
By 2050, the University of Sydney’s vision is to host 25,000 students, generating 20,000 jobs and add $13 billion to the NSW economy.