Fifa president Sepp Blatter was in attendance at the announcement - and said that the federal government will also need to be involved in the bid.

The subject will be on the agenda when Blatter meets Australian Prime Minister John Howard on Monday.

"Don't forget that the World Cup must be a federal matter, and we need the support of the federal government," Blatter said at the announcement on the steps of the Sydney Opera House.

"As I have the privilege to meet the prime minister on Monday, I'm sure that this item will be discussed again."

Blatter was enthusiastic about Australia's chances and praised them for the timing of the announcement.

"The possibility to organise this World Cup is a realistic initiative," Blatter revealed.

"I'm happy that it is being done so quickly after the 2002 World Cup.

"Australia have shown the whole world at the 2000 Olympics that they are able to organise any event."

And he clearly believes they would have no problems if they were chosen to host football's showpiece event.

"We have a lot of confidence and trust in Australian soccer," Blatter said.

"They have already organised two world youth championships and they have organised two competitions for the Olympics - the men's tournament and the women's tournament in 2000."

Among the cities and stadiums listed in the bid are the former Olympic venue in Sydney, the Melbourne Cricket Ground, the Gabba in Brisbane and the Suncorp Stadium in Brisbane.

Oceania Football Confederation president Basil Scarsella said New Zealand could host matches should Australia succeed in its bid.

"I'm sure the Australian government and Soccer Australia will talk to New Zealand when they are looking at possible venues," Scarsella said.

"There's no question there's some scope," said Scarsella. "At this stage it is an Australian bid but it needs development."

Political figures confirmed they have already begun work on long-term planning and logistics for the 2014 Cup bid.

"We have the venues in place, we've got the expertise and we've certainly got the crowds," said Victorian deputy premier John Thwaites.