The agreement is aimed at helping the Hong Kong Rugby Football Union (HKRFU) develop its rugby operations, while further strengthening the Waratahs Rugby brand in Asia, the Waratahs said.
As part of the arrangement three of Hong Kong's potential future rugby stars spent a week training with the Wallabies-studded Super 15 outfit in Sydney last month.
Cado Lee, 20, Kenneth Wong Kit-leung, 19, and Terry Tsang Kai-cheuk, 20, joined the training to help develop their athletic and rugby skills.
The joint venture came about through a mutual banking sponsor and Waratahs Rugby chief executive Jason Allen said his organisation had been working alongside the HKRFU on a number of levels for some time.
"There are great synergies between our businesses and we are delighted to be able to formalise our arrangement," Allen said.
"This is the first year of what we hope to be a longstanding and beneficial relationship for both parties."
HKRFU Head of Performance and national coach Dai Rees said the young Hong Kong trio had learned a lot from their experiences with the Waratahs in Sydney.
"The week was a heck of an experience for the players," Rees said.
"We are excited that these three players had an opportunity to further hone their skills and develop their potential but, equally, we are pleased that the boys enjoyed a very unique personal experience."
Coach placement will also help HKRFU fast track the development of top coaches under the agreement through week-long visits to observe the Waratahs during the Super Rugby season.