Based on the Australian Institute in Sport (AIS) in Canberra, the European Training Centre (ETC) is situated about one hour north of Milan and boasts the latest in sports science, sports medicine, gymnasiums, recovery pools and five star accomodation.

At least 15 sports will train there for the London Olympics.

Australia's table tennis athletes will be the first through the door in a fortnight.

There is a wheelchair basketball team coming in April.

The state of the art centre, located on the shores of the picturesque Lake Varese in the town of Gavirate, was opened in front of hundreds of local dignitaries and media.

The Varese facility is designed to overcome what Australian Olympic Committee (AOC) President John Coates calls the "great tyranny of distance and will give our athletes an edge over their rivals at the Games."

It eliminates the vast distances athletes need to travel to and from Australia as well as the enormous cost of moving teams to Europe.

Instead they will live and train on Lake Varese.

"It is just not feasible to go back and forth to Australia," Coates said.

Arbib said Varese "is a replica of the AIS and is a critical piece in the puzzle in the lead up to London.

"The lake is ideal for rowers and canoeists and the quiet roads are perfect for our cyclists.

"We are up against the super powers of sport, in terms of the money being spent by other countries we cannot match it, all we can do is try to be smarter and more strategic about our resources.

He said the facility is not just for Olympic and Paralympic sports and he expects a large number of non-Olympic sports to book in.

The facility is the first of its kind built in a foreign country with the full support of the Italians.

Local Italian athletes and their Olympic athletes will also be able to train at the complex which will allow Australian teams in residence to compete against their Italian counterparts.

The AOC and the Italian Olympic Committee (CONI) signed a cooperation agreement in October 2010.

Australia's best coaches will be based in Varese and will assist the Italians.

Coates believes Varese will help the Australian Olympic team in London, including helping them achieve their ambition of finishing above Britain in the final medals table.

"This facility can lift us to fourth or fifth place in London, it can mean the difference between a silver and gold medal," he said.

Three-time world cycling champion Michael Rogers said it would make life so much easier for young Australian athletes on the continent.

"It is a huge asset for all Australian athletes coming to the London Olympics," he said.

"Knowing, if you are injured, that you are only a direct flight away from sports science and recovery people that you know and trust is great."

Australian rowers and cyclists have been coming to the province of Varese for more than a decade because of its climate, nearby facilities and close links to transport.

CONI President Giovanni Petrucci said the Australians would still be welcome even if they snatch gold medals off Italians at the 2012 Olympics.

"Our goal is to overcome you anyway," Petrucci said.

The centre can accommodate 50 athletes and has arrangements with local hotels when numbers exceed capacity.

The facility is owned by the province and leased out by Australia for the next 10 years followed by two lots of five-year options.