The federal government will foot most of the bill for holding the G20 summit in Brisbane, Queensland Premier Campbell Newman says.
Federal Treasurer Wayne Swan confirmed on Wednesday that Brisbane will host the 2014 meeting of the world's 20 largest economies, bringing thousands of delegates and media to the city.
Mr Swan said there would be an agreement between the two levels of government on paying for the G20 summit but committed the Commonwealth to paying $370 million over four years for the event.
Mr Newman said it was up to the federal government to pay for the summit.
"As this event is clearly a Commonwealth government responsibility, agreement has been reached that the Commonwealth will pay the majority of costs, as it has with similar events in other states," he said.
The federal government would give the state additional funds to pay for the necessary security during the summit, Mr Newman said.
"Importantly, the Australian government has also given an undertaking that no Queensland community will be left with inadequate police resources due to the summit," he said.
Mr Newman said the Commonwealth had given a good faith agreement to bring forward works to upgrade the city's communications network.
Lord Mayor Graham Quirk said the summit would provide a massive boost for Brisbane.
"This well and truly makes Brisbane Australia's new world city and is a wonderful opportunity to showcase our city to the world," he said.
"The event is a big economic boost for the city, especially for the tourism and hospitality sectors, and will also have longer term benefits for residents and businesses."
Prime Minister Julia Gillard is in Brisbane and is expected to formally announce the decision later on Wednesday morning.