Prestwick Airport is to receive £80 million for a spaceport, visitor hub and innovation centre.
The cash injection could double the 4000 aerospace jobs in Ayrshire to 8000.
The money has been announced as part of the Ayrshire Growth Deal, which was agreed last Friday.
Plans for two new aircraft hangars have been revealed.
There will be a purpose-built 10,000ft² aerospace and space innovation centre for research and business development in partnership with universities.
A visitor centre promoting science around space and aviation is also included in the bid.
And up to to 350,000ft² of industrial manufacturing space is to be developed.
Publicly-owned Glasgow Prestwick Airport has made a loss in the past.
A transport assessment is taking place to weigh up the impact of expansion on rail and road links.
The airport vision was revealed on Friday when the Ayrshire Growth Deal heads of terms agreement was signed by politicians.
Secretary of State for Scotland David Mundell said: “From a UK perspective Prestwick is one of the most important sites for aerospace and a potential spaceport.”
Transport secretary Michael Matheson said the plans would see the public and private sector join forces with academia to grow the aerospace and space sector.
The deal sees £32 million invested by the UK Government, £30 million by the Scottish Government and £18 million from South Ayrshire Council in the airport.
South Ayrshire Council leader Douglas Campbell said the deal overall ensured Ayrshire “punches well above its weight in terms of what we contribute to the economy”.
He described the signing of the heads of agreement as a “truly historic occasion” and the “pinnacle of more than three years of hard work.”
Councillor Brian McGinley, local economy and culture chief, said: “To make the most of this investment we are determined that the benefits are shared by all, bringing quality training and jobs that will pay good wages.”
Overall the £251.5 million Ayrshire Growth Deal aims to generate 7000 jobs. The investment will be delivered over 15 years.
Elsewhere in the area there are plans for a low-carbon energy scheme at Hunterston, a local electricity supply project in Cumnock and a manufacturing corridor in Kilmarnock.
