A centre to mark the centenary of the Australian and New Zealand Army Corps will be built in Albany in Western Australia.
The federal government is contributing $A1.3 million dollars towards the centre.
The ABC reports it is expected to be completed by the start of the centenary period in 2014.
Veterans' Affairs Minister Warren Snowdon says Albany was chosen because convoys carrying the ANZACs gathered and departed from the town in November 1914.