A Satyam Australia spokeswoman confirmed that the project has been cancelled.

In July, Tech Mahindra, the new owner of Satyam, said it was committed to the project and was investigating its viability.

'We're committed to the project, we've got due diligence in place,' said Tech Mahindra executive vice-chairman Vineet Nayyar. 'The goal is to complete the project but we need to investigate how much investment is needed.'

According to the report, Mahindra Satyam has also agreed to pay back the undisclosed cash grant to the Victorian Labor government headed by Prime Minister John Brumby that the company was given to set up the IT hub in Geelong.

The fate of the Geelong project had been hanging in balance after Satyam founder and chairman B. Ramalinga Raju admitted to a $1-billion accounting fraud in January.