THE ageing Central Coast population has welcomed a Federal Government pledge of $32.5m to build a world-class medical school and research institute at Gosford Hospital.

Modelled on facilities at leading American and English universities, the $72.5 million Central Coast Medical School and Research Institute will become a landmark project for the Central Coast, after the University of Newcastle and the NSW Government previously each pledged $20 million for the facility.

Central Coast Council's Administrator, Mr Ian Reynolds, said a state-of-the-art facility such as this will be a major catalyst for the further revitalisation of the Gosford CBD and deliver enormous benefits for the entire region.

"This is a real win-win for our community - it will create more local jobs and deliver better health services across the Coast," Mr. Reynolds said.

"The creation of 750 jobs and $200 million economic boost will be key drivers for our region moving forward, strengthening the rejuvenation of the Gosford CBD with flow-on effects across the whole community.

"Housing an internationally-recognised medical and research facility right on our doorstep will really put us on the map."

The 9000 square metre state-of-the-art facility will be located in a new health and well being precinct opposite Gosford Hospital and is hoped to be operating by June 2018.

This project coincides with the NSW State Government's $368 million redevelopment of Gosford Hospital, which is designed to deliver improved health services to the community.