Up to 500 Indigenous trainees will become accredited in delivering culturally appropriate health services to communities.
They will work in Aboriginal Community Controlled Health Services, which provide maternal, childhood, mental, aged care and sexual health care.
Training will be delivered as close to home for the students, and on country, where possible.
The Joint Council on Closing the Gap will meet in Adelaide on Friday, for the first time since 2021.
Indigenous Australians Minister Linda Burney said closing the gap was a "top priority" for the government.
"Expanding the health workforce through culturally appropriate traineeship programs and supporting their capacity will save lives and bring us closer to closing the gap in First Nations health outcomes," she said.
Indigenous health assistant minister Senator Malarndirri McCarthy called the program a "game-changer" and said all First Nations people deserved to live long and happy lives.
National Aboriginal Community Controlled Health Organisation chief executive Pat Turner said the program was an ideal way to grow a qualified workforce and meet shortages in the Indigenous controlled health sector.
The rollout of the program will deliver on the National Agreement on Closing the Gap.
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