Anthony Albanese and Premier Peter Malinauskas will on Thursday visit Whyalla to announce the package, one day after the SA government placed the town's steelworks in administration.
The "unorthodox" decision came after the state government rushed legislation through parliament on Wednesday, giving it authority to act on debts owed by steelworks owner GFG Alliance and secure its future operations.
"The prime minister has been fully abreast of the situation around GFG, I've been regularly engaged with him, and I very much look forward to that interest and that active engagement from the Commonwealth being more fully known in the not-too-distant future," Mr Malinauskas said.
GFG has been under intense pressure from the government to pay debts to creditors of the Whyalla Steelworks and the state, which is owed "tens of millions of dollars", including $15 million to SA Water.
The steelworks had been placed in the hands of administrator KordaMentha to stabilise operations and explore a possible sale, Mr Malinauskas said.
"It is unacceptable for such an important critical piece of economic infrastructure for the nation to be in a situation where its ongoing operations are so severely compromised," he said.
In Whyalla on Thursday, he and the prime minister will announce "one of the most comprehensive industry support packages that this nation has ever seen".
It is not yet known what role the federal government will play in the support package, but Mr Albanese and Industry Minister Ed Husic will be in Whyalla.
"Taking a step of this nature - governments putting businesses, particularly large ones, into administration - undoubtedly is unusual and not orthodox," Mr Malinauskas said.
"But my word in this instance it is, I can tell you."
GFG said it was assessing what the announcement meant and was seeking advice on its options.
"Our concern is first and foremost the wellbeing and safety of our employees," it said in a statement.
The federal opposition said it supported the SA government's decision to place the steelworks into administration, and it "provides some measure of immediate certainty for these communities".
"The full details of the support package, the role of the federal government, and the total cost has not been released (on Wednesday) and this must be provided, so that taxpayers and the people of Whyalla can have certainty for their future," opposition MPs said in a joint statement.
The move comes after months of uncertainty at the steelworks and reassurances from its chairman, UK billionaire Sanjeev Gupta.
Mr Gupta on Friday said a debt settlement deal had been reached with creditors of global financier Greensill Capital, which had advanced billions of dollars in credit to GFG before collapsing in 2021.
He later said the steelworks was turning over $13-$14 million a week and hoped to be breaking even by mid-year.
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