As part of a new $1 million initiative, CSIRO will collaborate with several other government departments to produce a new technology to work where traditional GPS systems cannot.
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CSIRO said the technology will be suitable for tracking workers in emergency situations and following racing cyclists.
Dr Mark Hedley, a scientist at CSIRO, said the system is based on radio frequency tracking technologies.
The system comprises a network of wireless nodes which can be combined with sensors, and can track several environmental variables.
These variables include heart rate, core temperature and gas and radiation levels.
"Exact readings of these factors at the location where the personnel are standing can then be provided back to a base station," Dr Hedley said.
CSIRO has already commercialised the technology for use in horse racing and motor racing.
The new contract will focus on emergency situations.