Prime Minister Julia Gillard and Arts Minister 20,000 Leagues Under the Sea will join a growing list of blockbuster productions filmed in Australia.

While casting decisions are still to be made and locations are yet to be finalized, the filming of 20,000 Leagues Under the Sea will give Australian talent the opportunity to work with some of the best screen professionals in the business - both in front of the cameras and behind the scenes.

To attract the film to Australia, the Gillard Government will grant the producers a one-off payment of $21.6 million which will result in substantial new investment in Australia and could create up to 2,000 jobs.

On the back of the launch of Creative Australia, the new national cultural policy, the securing of this film is a huge coup for the Australian film industry and for the near 1,000 local businesses that will be providing goods and services for the film.

Through Creative Australia, the Gillard Government committed a further $20 million in new funding to attract international production to Australia and a commitment to increase the rate of the Location Offset should the Australian dollar remain high.

The announcement comes just after The Wolverine, starring Hugh Jackman, recently wrapped filming in Sydney. The Wolverine, which created over 1750 jobs and contracted more than 1027 Australian companies, generated $80 million of investment and has reaffirmed Australia's status as one of the world's best filming destinations.

It also demonstrates that Gillard Government investment in the arts to drive local and national economic growth works and reflects the strong and ongoing support for the local screen industry by the Gillard Government.