The film had previously been confirmed to shoot in Australia, following a federal government grant, and several states had jockeyed to land the picture.
The NSW government did not specify how much finance it will provide, but said that the film would contribute some $43 million (A$60 million) to the local economy.
The move potentially gives the state a trio of “Alien” movies. Director, Scott has recently said that he envisages three prequel movies and that the plan is to shoot all three in Australia. “Covenant” is a second prequel, following “Prometheus.”
Michael Fassbender will reprieve his role and is expected at the Fox Studios in Sydney from March next year. The film is scheduled for release in October 2017.
“This is the fourth film Twentieth Century Fox has shot in New South Wales since ‘Moulin Rouge’,” said Fred Baron, executive VP, Twentieth Century Fox.
“It has been a long-time goal for me to make a movie down under, and I am extremely pleased that it’s finally happening,” said Scott, who is also a producer on the picture.
“NSW has an international reputation that is second to none because of the quality of our cast, crew and facilities. This is a technically challenging film to make but our NSW filmmakers are up to the task,” said NSW Deputy Premier and Minister for the Arts Troy Grant.