A “Silicon Valley” will be created in the heart of Sydney’s Western Suburbs, generating an estimated 52,000 jobs over the next 10 years.

The Daily Telegraph can reveal a $500 million plan will go before a Cabinet budget committee tomorrow to declare 10,000ha of western Sydney a “special economic zone”.

It will be the largest in Australia and is expected to create employment for thousands of workers in new hi-tech, IT and bio-medical industries as well as blue collar manufacturing.

“It will be a massive centre for jobs,’’ a senior Cabinet source said.

A briefing paper, obtained by The Daily Telegraph, outlines a $557 million infrastructure program to develop the area for release.

The employment zone will take up a vast slab of semi-rural un-used land around Badgery’s Creek at the junction of the M4 and M7 which is within 30 minutes of Penrith, Blacktown and Liverpool.

Industries and business will be given payroll tax and land tax reductions to set up in the area, with a report showing the high demand for greenfield space was bypassing Sydney with jobs going to Brisbane and Melbourne.

A network of rapid bus links, public transport and upgraded roads will link every major western Sydney centre to the new jobs zone.

The plan also involves the creation of a western Sydney freight link and dedicated freight rail line linking it to Port Botany.

The Western Sydney Employment Lands would be the largest jobs zone in the country, modelled on Singapore and other overseas cities which have led to employment booms in these dedicated economic zones.

Transport corridors have already been reserved by a taskforce commissioned in October 2007.

“This is essential to the economic wellbeing of the state. They are vital to the state’s future,’’ the document says.

The document claimed that the employment zone would generate an extra $16 billion in value to the NSW economy by 2031.

Around 3000ha would be retained for open space and 2000ha for housing.