“The HMAS Adelaide, a 138 metre long escort frigate with 28 years naval service, is to be sunk as a dive site off Terrigal," Mr Kelly said.

“It will provide a major tourism boost to the Central Coast region and support local jobs."

Member for The Entrance Grant McBride welcomed the opportunity for commercial management of the wreck which includes marketing, booking of moorings, ticketing, merchandising, organisation of tours and management of the website.

“The vision for the site is to provide a challenging, exciting and sustainable dive experience catering for divers with varying interests and levels of experience as well as other compatible activities,” Mr McBride said.

“Work is currently being undertaken to prepare the ship for scuttling which is expected to take place around April 2010 depending on weather conditions at that time.

“This project is the first of its kind in this state and will put the Central Coast on the map with only a handful of other similar dive sites in Australia. This site will be a national and international attraction for divers.

“Proposals are now being sought from suitably qualified organisations willing to act as the Land and Property Management Authority’s agent once the ship is scuttled.

“Interested parties must submit their proposals by 2pm on November 6, 2009, with further details available at www.lpma.nsw.gov.au," Mr McBride said.