Australia's University of Newcastle (UON) on Friday announced the establishment of a scholarship program supported by China's Jack Ma Foundation.

Jack Ma Foundation will give US$20 million (AU$26.4 million) to fund a first of its kind scholarship program at UON, marking the largest philanthropic commitment in UON's history, and the Jack Ma Foundation's first philanthropic contribution in Australia.

Ma was joined by New South Wales (NSW) Premier Gladys Berejiklian MP, UON Chancellor Paul Jeans and others to announce the scholarship program in Newcastle.

In its initial year, The Ma & Morley Scholarship Program will support 30 new UON scholarships, 20 scholarships to support students throughout the duration of their degree, including access to a unique and comprehensive engagement and enrichment program, and 10 one-off scholarships to support educational exchange, internship or immersion activities.

When the program reaches full capacity, it will support 90 students per year.

UON Vice-Chancellor, Professor Caroline McMillen, said The Ma & Morley Scholarship Program at UON would have a transformational impact on the lives of students and shape the next generation of leaders.

"Through this remarkable friendship spanning decades, a new generation of talented students will have the opportunity to reach their full personal and professional potential," Professor McMillen said.

"This scholarship program will exemplify the shared values between Mr Ma and Mr Morley, and aims to develop the next generation of globally aware and socially conscious Australian leaders," Professor McMillen said.

The first round of The Ma & Morley Scholarship Program will be advertised in mid-2017 for students commencing their first year of an undergraduate degree at UON in 2018.