Australian Deputy Prime Minister Julia Gillard is expected to make an announcement in this regard during her visit to New Delhi next week.

The proposed India-Australia Institute to be built at a cost of eight million Australian dollars will be a part of University of Melbourne where La Trobe University and University of New South Wales will also be partners.

"The institute will work on areas of business links and cultural assimilation," a government official said adding that it will concentrate on areas like trade and industry.

The two countries have also started a feasibility study on the subject which is expected to be completed soon.