Australian film maker Baz Luhrmann will film a new 3D version of The Great Gatsby in Sydney later this year.
Leonardo DiCaprio will star in the production, expected to attract $120 million in investment income to NSW.
Pre-production on The Great Gatsby will start in March with 17 weeks of filming starting in August, followed by 30 weeks of post-production work.
NSW Premier Kristina Keneally hailed the announcement as a big win for Australian film making.
"This comes at a good time for the film industry," Ms Keneally said in a statement on Sunday.
"Australia was thought to be losing international filmmaking due to the strong Aussie dollar - put simply, this is a big win."
The film, based on the 1920s novel by F. Scott Fitzgerald, will be the first live action film shot in NSW in 3D.
"The Great Gatsby will be a boon for the NSW film industry, particularly given Baz Luhrmann's commitment to maximising use of local cast, crew and visual effects expertise," Ms Keneally said.
An estimated 275 crew will be employed during pre-production, more than 400 cast and crew will be employed during principal photography, and an estimated 150 post production and visual effects crew will also be employed.
US studio giant Warner Bros will back the Bazmark Films production and Fox Studios in Sydney will be the production base for the film.
Other parts of NSW will also be used during the filming and visual effects and post production work will also happen in NSW.
The film has been secured under the NSW government's enhanced film investment fund.
The NSW budget included an extra $25 million for the NSW screen industry - including $20 million to attract large-scale productions such as The Great Gatsby and $5 million extra for Screen NSW's Production Investment Fund.
"We're determined to keep skilled NSW cast and crew working right here, and we'll work to strengthen our leadership in the film and PDV (post digital visual effects) industry both here and overseas," the premier said.