A MULTI-million-dollar investment and a 21-year lease have sealed the future of Seaworks in Williamstown as a maritime tourist destination and the state's boatbuilding capital.

Parks Victoria and the Seaworks Foundation last Friday signed a historic lease that will establish a new maritime precinct at the old Port of Melbourne Authority site.

Victoria University also announced it would invest $3.4million to establish a maritime education campus at the Nelson Place building.

VU boatbuilding teacher Eric Sandberg said the move to Williamstown would benefit students immensely.

"I'm overjoyed. The plans from Victoria University have been in the pipeline for a while and the set we've designed will help our students," Mr Sandberg said.

State Williamstown MP Wade Noonan said opening up the Crown land would have great benefits for Williamstown and Melbourne's west.

"This will be the only marine trade education facility of its kind in southern Australia," he said. "With the help of the Seaworks Foundation, Victoria University and private sector support, we will establish a major waterfront promenade for Williamstown in keeping with the port's rich heritage." Under a development plan for the site released on Friday, public open space will be created for waterfront events and festivals.

Seaworks secretary and Williamstown Maritime Association president Patsy Toop said she was ecstatic.

"The 21-year lease means we can offer sub-tenancies to commercial enterprises or community groups for a lengthy time."

VU's acting vice-chancellor Anne Jones said the public would be able to view boatbuilders at work. "The community will be able to see trainees as they learn their skills."

The new campus is due to open next year.