The project will be co-funded with $10 million from the federal government, $10 million from the state government and $5 million from industry.

Federal member for Grey Rowan Ramsey and South Australian Regional Development Minister Tim Whetstone committed to replacing 1600 kilometres of the ageing 2150km fence in Adelaide on Thursday.

Mr Ramsey said the fence was in desperate need of renewal.

"Wild dogs have been tearing thousands of sheep to pieces in the areas to the south of the leaking fence," Mr Ramsey said.

"Now is the time to act and I am pleased we are stepping up to do that job.

"Federally, we will front-load the investment by making $1 million available now.

"The balance will be one of the first projects delivered from the $3.6 billion Drought Future Fund, which kicks in on July 1."

Mr Whetstone said the fence was a crucial part of supporting and protecting the state's sheep industry.

"The funding will ensure its continued effectiveness and support for pastoralists from the ongoing threat of wild dogs," Mr Whetstone said.

The fence starts along the cliffs of the Great Australian Bight and winds its way across SA's mid-north to the NSW border.

It protects sheep grazing districts from wild dogs and dingoes.

Australian Associated Press