Australia's bid to crack the trillion-dollar space industry could land a National Agency headquarters in Victoria.

The nation made history in 1967, becoming just the third country in the world to successfully launch a satellite.

But our space-race credentials took a hit in the mid-90s, when former Prime Minister Bob Hawke's National Space Office was terminated.

Today, Australia is one of the world’s only developed countries without a national space program.

“Twenty years ago, it was really the public sector investing in space technologies,” Lead Scientist Dr Amanda Caples told 9NEWS.

“Whereas nowadays, we will see private investors coming in to the sector.”

Recently $41 million in federal funding was poured into creating a National Agency, piquing the interest of Victoria.

“It’s about jobs that create new materials, new technologies… 3D printing that allows you to make satellites that are lighter, cheaper and on-demand,” Associate Professor Alan Duffy from Swinburne University said.

“We are already a space state. A headquarters is just to recognise that.”

The state could be in for a fight against Western Australia, which is home to the world’s largest radio telescope, along with Canberra.

A decision on where the space headquarters will be built is expected by the end of the year.