The Mad Max prequel starring Chris Hemsworth and Anya Taylor-Joy will be filmed in the Australian outback ahead of its 2023 release.
Furiosa is expected to become the biggest film ever made in the country, according to New South Wales state premier Gladys Berejiklian.
Australian Hemsworth said that being involved in the film in his home country was a "pinch-myself moment".
"This will be my fourth or fifth film here in Australia," the Thor actor said in Sydney.
"It really is, out of everything I've done, the biggest 'pinch-myself' moment, because I've grown up watching it (Mad Max) and it's so iconic.
"It is a huge honour. A lot of pressure, but exciting pressure that is certainly motivating."
Locations across New South Wales will be used during filming, including the mining town of Broken Hill, which has provided the post-apocalyptic landscapes for the franchise.
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Anya Taylor-Joy, known for her turn in Netflix's chess drama The Queen's Gambit, will play a younger version of Furiosa, taking over from Charliza Theron.
George Miller, the franchise's writer and director, said he was "grateful" to be able to make the film in his home country, adding he was excited by the role that film-making was playing in Australia's recovery from the pandemic.
Australia has recently been dubbed "Aussiewood" in the media, given the number of stars that have swapped the Hollywood hills for the freedoms of Sydney.