Leading neuro-immunologist Professor Claude Bernard of Monash Immunology and Stem Cell Laboratories, internationally renowned for his work in the underpinnings of MS, will lead the research team in Melbourne. Professor Kenneth Weinberg leads the Stanford University team.

At the moment the initial triggers that activate Multiple Sclerosis remain unknown, but many studies suggest the body's immune system plays a role in the progression of MS, Mr Jennings said.

Success of the study is crucial to arriving at the goal of safely and successfully using stem cell therapies to treat disease and regenerate tissues.

Multiple sclerosis affects approximately 2.5 million people worldwide. In Australia it is estimated that there are around 18,000 people with MS. Approximately $35,500 is spent every year on treatment for an individual with multiple sclerosis.

The California Institute for Regenerative Medicine is co-funding the project with $1.6 million for the research partners in California.