Prime Minister Anthony Albanese hailed the agreement as the "largest investment in remote communities we have ever seen".
"This is a great day for the Territory and it's a particularly great day for remote communities," he told the media in Alice Springs on Friday.
Mr Albanese said the investment would make sure First Nations people are not "left behind".
"We want to make sure every single dollar from the Commonwealth goes to making a difference to people's lives," he said.
"If things are not working, we will change them, intervene to make sure the dollars go to where they are anticipated, which is improving the lives of Territorians."
The agreement, signed by the federal and NT governments, and the Aboriginal Peak Organisations Northern Territory seeks to transition services from government to community control over time.
Indigenous Australians Minister Malarndirri McCarthy said the most effective solutions come from local communities.
"This investment will ensure remote First Nations communities have access to the critical services they need, while supporting communities to lead in their economic and social development," she said.
Funding for up to 12 Aboriginal community controlled children and family centres, and the establishment of local groups in up to eight locations, to design and deliver services in community are also set out in the agreement.
"This is about backing up families and providing the funding to do so," Mr Albanese said.
"It does mean that more than 570 local NT remote jobs are secured to deliver these programs, making such an enormous difference."
Interpreter services will get a boost and hearing and oral health services will continue to be funded.
Aboriginal Peak Organisations NT convener John Paterson said the investment is "one of the best, genuine, meaningful" outcomes he's seen in his working career.
He attributed this to the involvement and participation of Aboriginal leaders in the Territory who "know their business" and communities.
"What this agreement demonstrates is that when the partners, along with the Aboriginal leadership get around the table to negotiate ... we can achieve the outcome that we're all aspiring and wanting," Dr Paterson said.
NT Chief Minister Lia Finocchiaro also welcomed the renewal of the agreement, saying a "big portion" would go to policing.
"We know that community safety is the number one priority of Territorians no matter where they live," she said.
"But this funding will go further than remote policing, which is critical, it will also support better health outcomes for Aboriginal people living in the bush, greater empowerment and decision making and of course making sure that our remote communities are invested in."
