ESO has initiated in June 2004 a concept of Adaptive Optics Facility. One unit 8m telescope of the VLT is upgraded with a 1.1 m convex Deformable Secondary Mirror and an optimized instrument park. The AO modules GALACSI and GRAAL will provide GLAO and LTAO corrections forHawk-I and MUSE. A natural guide star mode is provided for commissioning and maintenance at the telescope. The facility is completed by a Laser Guide Star Facility launching 4 LGS from the telescope centerpiece used for the GLAO and LTAO wavefront sensing. A sophisticated test bench called ASSIST is being designed to allow an extensive testing and characterization phase of the DSM and its AO modules in Europe. Most sub-projects have entered the final design phase and the DSM has entered Manufacturing phase. First light is planned in the course of 2012 and the commissioning phases should be completed by 2013.