In Sale on Wednesday representing Federal Regional Development Minister Anthony Albanese, Resources, Energy and Tourism Minister Martin Ferguson announced $3.25 million would go towards the stadium, which will be part of the $10.9 million Gippsland Regional Sports Complex at the corner of Cobains and Gibsons Rds.

The funding comes from the government's $800 million Community Infrastructure Program.

"The real focus is to get local projects up and running,'' Mr Ferguson told The Gippsland Times.

"It is important for the local community that we deliver on community expectations that have been out there for five years.''

It is hoped the indoor stadium, along with initial works for soccer and hockey fields, would be completed by the end of 2010.

"Hopefully by the end of 2010, this paddock will have an entirely different shape,'' Mr Ferguson said.

The promise of such a stadium was a major factor in convincing the Sale Netball Association to move to the site to make way for the relocation of East Gippsland TAFE.

Association president Gail Woodland said she was pleased to hear the project would come to fruition.

"Now we've actually got the money, it's a fantastic thing,'' she said.

"Having 12 outdoor courts and four indoor courts puts us in a strong position to develop netball in Sale.''

The indoor stadium would also lead to the relocation of the Sale Amateur Basketball Association from the OA Ruff Stadium to allow for the expansion of Central Gippsland Health Service.

The construction of the initial stage of the complex, the 12 outdoor netball courts, should be finished by the end of this year.

But $2.5 million is still needed from the State Government to compete the project.

Council chief executive Lyndon Webb, who will meet with State Government representatives this week, hoped the Federal move would force the State's hand.