Australian squash received a major boost on the opening day of the Australian Open with the announcement that the country's elite players will receive more support thanks to a revised partnership between the Australian Institute of Sport and Squash Australia.

Minister for Sport Mark Arbib said the new national high performance program with the AIS was fantastic news for Australian squash.

"The Federal Government recently invested $200,000 in additional high performance funding to help Squash Australia expand its current programs and develop a new national high performance program," said Senator Arbib.

"The additional Government investment means the new look program will offer AIS scholarships to world-class international-standard players, as well as to athletes at the development stage who are yet to achieve world-class status.

"The program will provide athletes with benefits such as high quality coaching, facility access and sports science and medicine services at the Brisbane base."

Senator Arbib said the Gillard Government was a strong supporter of squash at all levels, providing more than $1.2 million in annual funding to support development at both the elite and grassroots level.

"More than 240,000 people play squash around Australia and we have had great performances on the international stage. I have no doubt this new funding will help continue that success," Senator Arbib added.

Squash Australia CEO Gary O'Donnell said the support the Australian Government had given the sport through the AIS had increased its success on the international sporting stage.

"Squash continues to grow as a world sport and that brings with it a substantial competitive challenge," Mr O'Donnell said.

"The new AIS/Squash Australia National High Performance program will provide the resources for our players to rise to that challenge."

The AIS Squash program was one of the Institute's first decentralised sports programs in 1985 and has helped develop multiple World Champions in singles, doubles and teams, as well as contributing to Australia's outstanding performances in the Commonwealth Games.

The announcement comes as Australia's premier players compete in the Viridian Australian Open, the third PSA World Series event of the year in Canberra.

"I wish all the Australians the best of luck in the Open. I'm sure with this extra funding Australia will produce many more squash champions into the future," Senator Arbib said.

The Australian Squash Open is being played on the all-glass court at Canberra's Royal Theatre from August 8-14.