THE South Australian government may establish an institute of wellbeing in Adelaide.

The centre would be part of a wider wellbeing strategy which would also include providing positive psychology training to all children and teachers.

It would cost the government $7 million over four years with details of the budget proposal obtained by the ABC.

Premier Jay Weatherill says the proposals come from a leading thinker on positive psychology and are being considered as part of the budget process.

He says while he's very supportive of the recommendations the government hasn't yet given its approval.

The South Australian Opposition has rubbished the idea as another example of the government's "warped priorities".

Health spokesman Rob Lucas said rather than wasting money on a wellbeing institute the government should use the funds to deliver improved services in hospitals and schools.