The deal is a victory forQube, which has fought for years to develop a freight terminal on land it privately owns next to a government site at Moorebank.

Qube and Aurizon have been in exclusive negotiations with the government since May over rights to develop the site after offering to make their own capital investment in the hub, reducing the need for government funding.

The agreement requires final approval by the Commonwealth Government and the boards of Qube and Aurizon before proceeding. Qube's board will consider the proposal on December 10 and a final decision is expected in early 2015.

The site will include an open access import export freight terminal with a capacity of 1.05 million containers a year, and an interstate freight terminal with a capacity of 500,000 containers a year.

Qube clashed with the previous federal Labor government over its development plans for the site, which was concerned about giving the company control over an important transport terminal.

Relations improved after the government created the Moorebank Intermodal Company in 2012 and appointed former investment banker and public servant Kerry Schott chairman.

Ms Schott signalled last year that she was open to negotiations with the private sector, including the Qube-Aurizon alliance.

Qube has not released details of how it plans to pay for the Moorebank development, but raised $200 million in a private placement in March to fund expansion projects.

The Moorebank Intermodal Company, which is overseeing the development process, has already released an environmental impact statement.

Submissions on the statement may be made to the New South Wales department of planning and environment until December 8.