Perth Airport has narrowed the field to five construction companies that will tender for the development of the airport's new terminal.
The terminal will primarily service flights for the fly-in, fly-out market, as well as some interstate routes.
Perth Airport chief executive Brad Geatches said all airlines currently at the airport's current domestic terminals, other than Virgin Blue, Qantas and Jetstar, would relocate to the new terminal.
"Not only will these airlines and their passengers benefit greatly from the new terminal, but the move will also substantially reduce activity in the current domestic precinct, thereby improving our customers' experiences in the existing terminals," Mr Geatches said.
Mr Geatches said the new terminal would have a much larger footprint than the current domestic terminal.
Westralia Airports Corporation will issue tender documents today, which close on May 20.
The shortlisted companies have not been identified under confidentiality clauses in the tender process.
The tender is expected to be awarded in July.
