The 2012 Australian Open will be the richest tournament in Grand Slam history with the men's and women's winners each claiming approximately $2.2 million.
The organisers Tuesday announced a total of $24.7 million for the tournament, which will be held January 16-29.
Tournament director Craig Tiley said players deserve the amount.
"We're proud of the fact that our prize money, our $26 million prize money pool, is the biggest in the history of the sport," Tiley said in Melbourne.
"We've led the way the past four years, we like to do that and we know the players are appreciative of it. We believe and have consistently said that the players deserve it," he added.
There will also be a women's legends event. The tournament will welcome three-time champion Martina Hingis back to Melbourne.