Three major federal analytical labs are to be merged from next July, when a National Measurement Institute will be formed from the amalgamation of the National Measurement Laboratory, the National Standards Commission and the Australian Government Analytical Laboratories.

The three agencies' current facilities will remain in place, and the new institute will be headquartered at Lindfield in Sydney.

The head of the Department of Industry, Tourism and Resources' analytical division, Robert Crick, said the new institute would provide better services to industry.

"This is an opportunity for better coordinating services for physical, chemical and biological measurement," he said. "[It will be] a one-stop-shop for industry, and there will be a better base for research and development on those premises."

The three agencies currently employ about 400 people. Crick played down suggestions that the merger would lead to job losses.

The government is currently seeking views on the merger. Until the institute is formally established, the three existing agencies will operate as normal.