ARARAT Rural City Council hopes redevelopment of the Alexandra Oval Community and Recreation Centre will bring national and state level events to the town.
The State Government committed $1.15 million towards the project on Thursday.
Mayor Ian Wilson said council had invested $1 million towards the development.
He said Ararat Community Enterprise had added about $100,000, while the Alexandra Oval management committee had pledged about $70,000.
The final hurdle is a $700,000 grant through the Federal Government.
Cr Wilson said council would find out if the grant application was successful at the end of the month.
He said about 50 or 60 people were at Minister for Sport and Recreation Hugh Delahunty's funding announcement on Thursday.
"From council's perspective we're extremely pleased,'' he said.
"It's an absolute boost for the community. This project is 10 years in the planning.
"With a little bit of goodwill we will get the federal money as well.''
Cr Wilson said if council did not receive the funding, it would seek other avenues.
He said once council had secured the money it would try to start work immediately.
Cr Wilson said the project had brought different groups and clubs together to plan the development.
The development would include replacing the existing changerooms with state-of-the-art, all-access change rooms.
It would also see the relocation and replacement of the netball courts.
Cr Wilson said significantly improved catering areas were also planned.
He said improved dining areas would allow the oval to host bigger events.
"We already have one of the best playing surfaces west of Ballarat. "We're hoping to attract state-level cricket,'' he said.
"AFL community camps could also come to Ararat.''
Council also hopes Victorian Football League and Australian Football League practice matches could be played in the town after the development.
Cr Wilson said several football, cricket, tennis, netball and running groups used the oval and recreation centre and would benefit from the upgrade.
He said the development, once started, could take more than a year to complete.
"It won't affect clubs this year but there might be slight disruptions next year,'' he said. "We have plans in place for that.''
Cr Wilson thanked the State Government and those involved in the proposed development for their support.
"We are rather pleased - it will be a great asset for Ararat,'' he said.