Premier Gladys Berejiklian said the state government's $1.15 billion commitment will help turn the Bradfield City Centre from "what is essentially a paddock today into a thriving global city centre".
The funding paves the way for work on the world class city precinct to begin this year. The project, which will support up to 17,600 highly skilled jobs, is located on the doorstep of the new Western Sydney International (Nancy-Bird Walton) Airport.
"This is another exciting step forward in realising the Government's vision for this city-building project," Ms Berejiklian said.
The funding commitment includes $975.5 million in enabling works to establish, remediate and allow site access to about 100 hectares of land and will also help to create a key Indo-Pacific economic hub.
NSW Treasurer Dominic Perrottet said Bradfield City will be the "next jewel in Sydney's crown".
"We're putting in the groundwork to deliver an iconic city that will unlock new economic opportunities, particularly for the people of western Sydney," Mr Perrottet said.
"The pandemic has shown us the importance of investing in our own backyard and this investment will create a precinct that will be home to businesses and industries that will create jobs not just today, but into the future as well."
NSW Jobs, Investment, Tourism and Western Sydney Minister Stuart Ayres said the government has committed $138.2 million for the First Building in the Bradfield City Centre which includes a $24.9 million high-tech facility. There is also funding for a four-year pilot of the New Education and Training Model (NETM).
"The NETM is a new model of tertiary education aimed at helping advanced industries access skilled labour. We are dedicating $37.4 million to the program over five years to provide more than 7000 courses for almost 3000 students," Mr Ayres said.
Liverpool mayor Wendy Waller welcomed the funding commitment.
"This announcement secures the long-term development of the Western Parklands City and underscores Liverpool's location advantage as the gateway to Western Sydney International Airport and the Bradfield Aerotropolis," Mayor Waller said.
"Bradfield is a city of the future that will support the creation of jobs, some of which will be paired with new education opportunities so locals can study and work in their own backyard."
Ms Waller reiterated the importance of connectivity to the airport along with greater access to public transport connections.
"We welcome the new Sydney Metro - Western Sydney Airport line and we continue to advocate for a choice of public transport options linking the airport including the extension of the Inner West and Leppington Line to the site and for the Fifteenth Avenue Smart Transit (FAST) Corridor," she said.