Hobart has been identified as the next location for the federal government’s City Deal, just months out from a state election.

The City Deal, which will be the fourth under the federal government’s Smart Cities Plan, will provide up to $400 million in funding for Science, Technology, Engineering and Maths (STEM) facilities, to be added to Hobart’s CBD.

Mr Turnbull said the City Deal will help guide and sustain the long-term development of Hobart, and ensure the city’s livability is not compromised.