Campbelltown Council and Western Sydney University are working together to establish a new campus in the heart of Campbelltown.
The partnership follows the signing of a Memorandum of Understanding earlier this month.
The two organisations will work together to deliver 'mutually-beneficial' projects like a campus in the Campbelltown CBD; a civic, community and justice precinct; the Macarthur Medical Reserach Centre; and the ongoing commitment to the Campbelltown Sports and Health Centre of Excellence.
The sports centre will welcome the Macarthur FC Bulls as its first tenants once complete.
The council and university will also work on a Health, Knowledge and Innovation Precinct with other key partners.
Mayor George Brticevic said the initial three-year agreement woudl see both organisations continue the region's growth as a knowledge hub close to the new Western Sydney Airport.
"Our city is at the centre of one of the fastest-growing populations in the country and has been identified as an emerging health and education precinct," he said.
"We have a great working relationship with WSU and this agreement will strengthen our ability to identify and deliver projects that will benefit our community by creating local jobs and improving services."
Western Sydney University Vice-Chancellor and president Professor Barney Glover said the university was uniquely placed to serve Campbelltown's rapidly growing population.
"For more than 30 years, Western Sydney University has provided world-class educational opportunities for the people of south-western Sydney and has been a catalyst for the economic and social transformation of the region," he said.
"We are pleased to be working in partnership with Campbelltown Council on a range of ambitious projects including the Macarthur Medical Research Centre and the Campbelltown Centre of Sport and Health Excellence - cementing the univeristy's role as an anchor institution for the region and confirming Campbelltown's emergence as a truly progressive city."
A project control group made up of representatives from Council and WSU will explore the feasibility of projects beneficial to both organisations.