CEO Douglas Clarke said the company had been looking at finding a new home in another location before it was approached by council with an opportunity too good to pass up.

"There's been some excellent thinking on the design (of the precinct) and it was great timing for council and for us."

The business will not only bring existing work, with the company hoping its Wagga location will attract more contracts.

"This facility will be three or four times the size than what we've had in the past," Mr Clarke said. "Hopefully it will draw other work we've had to let go because we didn't have the space for it."

One of the main reasons behind the decision to go with Wagga was its central location to Adelaide, Melbourne and Sydney and the support given by council staff to make it happen.

Council director of commercial and economic development Peter Adams said having Douglas Aerospace as an anchor tenant will be a "great thing for the city".

"We have had to be confident in making the investment in the airport, but we needed to ensure a return for the city," he said.

"The company will attract a lot of aircraft here for refurbishment work and given businesses don't want their planes on the ground too long, it will attract other businesses who work in airplane maintenance too.

"We're already in discussion with two or three other companies, which is really exciting."

Council has received approval for the construction of the Douglas Aerospace hangar development by Airservices Australia and the company is hopeful of breaking ground in a month.

The hangar will be a part of the two-pronged airport development including a commercial aviation and light aircraft precinct.