The $35 million facility at Toowoomba is expected to be completed by next year, with an initial intake of 100 people and a capacity for 250 pilots being trained every year, as the airline looks to meet increasing demand for commercial pilots.

The Toowoomba facility is likely to generate 100 direct jobs and 300 in the wider construction industry.

Toowoomba and Mackay had been on the shortlist of nine regional cities being considered by the airline for the first of two proposed facilities.

The centre will be based at Wellcamp Airport, which is a private facility run by the Wagner family.

Qantas chief executive Alan Joyce confirming the family had contributed a "significant amount" of money towards the project.

The state government also contributed a smaller amount to secure the deal, with Premier Annastacia Palaszczuk saying this highlighted how government could work with the private sector to secure important projects.

"This gives confidence not just to Toowoomba but confidence to Queensland," the premier said.

The exact funding arrangement is protected by commercial-in-confidence arrangements, and the premier would not say whether the government would also contribute to secure the second training facility

Mr Joyce said the location of the second facility was yet to be decided but would be announced in November, with the remaining eight locations including Mackay still in play.

Australian Associated Press