Bionic Vision Australia (BVA) is working to develop a functioning bionic eye that can restore vision to those with degenerative or inherited retinal disease, including retinitis pigmentosa.

While the device will not restore full vision, it will allow people with age-related macular degeneration to recognise faces, read large print and see small objects.

The Federal Government has allocated $A42 million to the project.

The five BVA partners are University of Melbourne, the University of New South Wales, the Bionic Ear Institute, the Centre for Eye Research Australia and NICTA.

"NICTA will be working closely with other BVA partners to develop the bionic eye implant," said NICTA's Victoria research laboratory director Professor Rob Evans.

"In collaboration with the University of Melbourne, we will bring our ICT expertise to develop a microelectronic chip consisting of more than 1000 electrodes and an ultra-tiny wireless data link, which will be implanted in a patient's eye," he added.

What other role will NICTA play in the project? See page 2.

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NICTA will also contribute its expertise in visual processing technology to the project.

The official launch of BVA took place in Melbourne today.