State and territory leaders have agreed to sell off their assets in exchange for federal infrastructure money.

Premiers and chief ministers met for the latest Council of Australian Governments (COAG) meeting last week, which saw them all officially sign up for a new ‘asset recycling agreement.’

The agreement allows the mass privatisation of government-owned assets including energy and water facilities, bridges, toll roads, ports, public halls, land and other assets.

The agreement was pretty well predicted before the meeting, with only the non-Coalition leaders raising any concern before Friday’s gathering.

But it appears all have been wooed by the promise of money for new roads as a reward for selling the old ones.

Under the plan put forwards by Federal Treasurer Joe Hockey - states will have up to three years to put together list of assets for sale and a wish list for new projects.

The Commonwealth will give the states access to a “pool” of money to draw 15 per cent of the value of their privatised assets, providing the loan pays for the construction of new, “productive”, infrastructure.

“I'm very pleased to have signed up today to the asset recycling,” said Victorian Premier Denis Napthine.

“[And] the incentives provided by the Commonwealth to assist our very, very strong infrastructure program... [to] meet the needs of a growing population.”

South Australian Premier Jay Weatherill has been vocal in his concern over the project, but has signed on anyway. He says he hopes to receive federal funding for infrastructure without having to sell anything.