The National Health and Medical Research Council (NHMRC) said the centre will study electromagnetic energy emissions from mobile phones and mobile phone towers.
The council intends to support a Centre of Research Excellence in Radio-Frequency Electromagnetic Energy with $500,000 (£178,000) a year for up to five years. The centre will be either an actual physical entity or a virtual one, linking research efforts from several different organisations.
NHMRC chief executive Alan Pettigrew said the council funded a number of studies on radio-frequency electromagnetic energy (EME) in such areas as neurophysiology, neuropsychology and cancer biology.
"More studies are required to provide comprehensive evidence," Professor Pettigrew said.