Western Australia will become home to a "world class" Aboriginal cultural centre under an deal struck on Monday between the State and Federal governments.

WA Premier Mark McGowan and Indigenous Australians Minister Linda Burney on Monday revealed the centre would be constructed on the carpark site between the Perth Concert Hall and Derbal Yerrigan (Swan River) by 2028.

The site was chosen due to its proximity to Derbarl Yerrigan, Matta Gerup (Heirisson Island and Katta Koomba (Kings Park).

WA Aboriginal Affairs Minister Tony Buti said the centre would be a place of education and reconciliation.

"It is envisaged the Centre will become a powerful symbol of truth telling and reconciliation, giving Aboriginal people from across the State a voice, and educating visitors about our shared history," he said.

The site confirmation comes as the State and Federal governments commit about $50m each to the building, with extra funds to be raised from corporate donors.

While the centre will be on Noongar country, the State Government has confirmed consultation will take place with Traditional Owners across WA.

Federal Indigenous Australians Minister Linda Burney said the centre would place Indigenous culture on the world stage.

"The centre will be a significant tourism drawcard for interstate and international visitors

travelling across Western Australia to experience unique Aboriginal cultural offerings," she said.

Cultural performances, community gatherings, visual arts, digital media and commercial opportunities are among experiences expected to be available at the centre.

The site was chosen by the Whadjuk Cultural Authority from six different locations.