A Memorandum of understanding will formalise the relationship between Parramatta Council and the Western Sydney Wanderers.
Parramatta Council lord mayor John Chedid said the MOU would enhance local business opportunities and promote social inclusion.
"[This is] in addition to the benefits represented by the direct economic injection of increased patronage during game days though consolidated promotions and marketing," Cr Chedid said.
The Wanderers injected about $17 million into the local economy last season.
Cr Chedid said the partnership was intended as a "value-exchange" rather than a traditional sponsorship.
The MOU is expected to come into effect for four years from November 1 with an annual strategic plan.
The plan could include initiatives like a forum to support sustainable sporting clubs; supporting the council's school holiday program; and tie in with the council's Healthy Generations initiative.
The council will also negotiate a MOU with the Parramatta Eels.