Local and regional advisory bodies would be established as part of a path to an Indigenous voice to advise federal parliament.
Up to 35 bodies designed and led by Indigenous communities would be up and running from July 2022 under the proposal accepted by the federal government.
It would also be obliged to consult a 24-member national voice on proposed laws overwhelmingly affecting Aboriginal and Torres Strait Islander communities.
"We heard in chorus - from our own people, along with non-Indigenous Australians - how much it would mean for Aboriginal and Torres Strait peoples to have our voices heard," the final report on the Indigenous voice process says.
"The importance of what we propose cannot be understated."
The report was authored by prominent figures including Indigenous academic Marcia Langton and delivered to the federal government for consideration in July before its release on Friday.
It's the product of a two-year consultation process to establish an Indigenous voice.
The coalition opted against enshrining a voice in the constitution as called for by the 2017 Uluru Statement from the Heart.
Indigenous Australians Minister Ken Wyatt said it was important to get the process right.
"For the Indigenous voice to work, it must have a strong foundation from the ground up," he said.
