Football Federation Australia chairman Frank Lowy and Italian Football Federation president Dr Giancarlo Abete signed the agreement prior to the opening of this week's FIFA World Congress in Sydney.

The deal will see the countries collaborate on the development of their football programs from youth level upwards via the exchange of resources and technical expertise.

And the agreement further states that each country shall support the other's bids for major tournaments, giving Australia a powerful ally in their push to host the 2018 World Cup.

"Australia, with this wonderful city of Sydney, has already hosted the Olympics in 2000," Dr Abete said.

"In the agreement it is stated clearly that the two countries will help each other and support in all possible ways if one of the two countries bid for a tournament or an international event."

The deal will also see Italy and Australia play a friendly fixture, in a re-match of the 2006 World Cup clash that saw the Socceroos knocked out controversially in the second round by the eventual champions.

And while Abete admitted Europe would be a more convenient location for the event he remains hopeful of finding a way to play the match Down Under.