The new grandstand option has been favourably received by the Government after a Treasury review rejected a grander $47 million plan, which included a hotel and walkway to the Steelers Club, earlier this year.

Today's announcement means it is likely the grandstand will be completed in less than two years and an official opening within the context of a March 2011 election campaign.

The funding announcement follows a long community fight for the replacement of the dilapidated grandstand, a campaign that was taken up by Minister for the Illawarra David Campbell and Wollongong MP Noreen Hay.

Plans are believed to include grandstand seating for 6000 people and new corporate facilities, which will be offered for hire outside the rugby league season.

Last month, Wollongong Sportsground Trust chairman Chris Christodoulou said the Government needed to move quickly on making a decision so the trust could meet "a whole lot of deadlines".

"The trust would ideally like to see a decision on this before Christmas in order to allow the go-ahead of the seven NRL games of the 2010 season as part of the agreement with the St George Illawarra Dragons," Mr Christodoulou said.

"We have been in consultation with the Dragons, but if a decision to go ahead is made after Christmas the trust can't plan with any certainty."