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Landcorp and The New Zealand Merino Company have teamed up with exclusive Australian manufacturer Prestige Carpets in a deal that will see 120 tonnes of wool from around 30,000 New Zealand sheep lining some of Australia's finest floors.

The wool will be spun in Petone before heading to Prestige Carpets.

"This is very much a specialist manufacturer, very niche, the very best designers and architects in Australia. And they want great quality, natural products," said Stephen Carden, Landcorp chief executive.

Seven Landcorp farms that will supply the wool and the farmers are pleased New Zealand fleece is being recognised for its strength and quality.

One of the farm managers, Dave Vaughan, believes that's a result of our ability to keep sheep fed well throughout the year.

"Wool's been treated as a commodity product for a long time. And really it's better than that. So to get into some niche and high-end marketing, it equals a big future for us. It's pretty exciting," Mr Vaughan said.

After years of market fluctuations, the opportunity for Lower Hutt spinners Woolyarns is being welcomed.

"We've had some pretty bad news going round of late, so this is some good news finally," said Andy May of Woolyarns international sales.

"We have 90 employees here so you know we're wanting to get consistent orders coming in week to week. And this will only help strengthen that.

There's confidence the partnership will progress over coming years and also hopes of moving in to similar niche markets in the United States and United Kingdom.

Watch the TVNZ story

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