The western change room will be relocated to the southern grandstand, where minor refurbishments will occur, including the upgrade of corporate boxes.

About 640 jobs, mainly in construction, would be created by the works, the Government said.

It is understood the Wollongong Sportsground Trust is working to a faster two-year construction timetable, with the demolition of the western grandstand targeted for the second half of 2010.

Chairman Chris Christodoulou said it was intended that all scheduled games at the stadium would not be affected.

He said the upgrade meant WIN Stadium could better attract national and international concerts and sporting events - including high-level rugby, rugby league and football games.

The process to finalise the design and start the tender process would now begin, with a final completion date "really dependent on the length of the procurement process".

Mr Rees said the new stadium was not dependent on the Federal Government paying $14 million.

"We are asking them for a contribution, but if they can't come to the party, we will go it alone," he said.

Wollongong MP Ms Hay said the community deserved the new stadium after years of pressure aimed at government decision makers.

"There's been a lot of lobbying and arm twisting and pleading and begging and threatening ... of course it's all been in good faith - amicable but firm," she said.

Ms Hay indicated people should not think funding for the stadium ruled out future injections in other areas.

"No one believes that hospitals and roads are more important than I do," she said.

"I am a strong supporter of getting whatever we can for Wollongong Hospital, for example.

"By the same token, though, we have a sporting facility here ... with a stand that is archaic.

"The people of the entire Illawarra are entitled to better."