The new launch centre, to be built on the southern island province of Hainan, is scheduled to be completed in 2012 and start operating in 2013, Xinhua news agency reported.

The location of the launch centre in Hainan, a low-latitude region, could help increase the capacity of rocket carriers and extend the life span of satellites, the report said.

More than 6,000 residents will be relocated make way for the space centre, which will occupy 1,200 hectares, it said.

The site will be mainly used for launching various kinds of satellites and large space stations, Xinhua said, adding that the plan has been approved by the government.

A 407-hectare space themed park will also be constructed near the new launch centre, it said.

China currently has three satellite launch centres, located in Jiuquan in the northwest province of Gansu, Taiyuan in north China's Shanxi province and Xichang in west China's Sichuan province.

China's first lunar orbiter launch last week, a key step in the nation's plans to put a man on the moon by 2020, was hailed by the nation as a milestone event in its global rise.

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