Kiama MP Gareth Ward announced the NSW Government had allocated $8 million from the bushfire local economies fund to the project, which has been on Shoalhaven City Council's agenda for some time.

"This has been a vision of many people for a long time, and at this time it's important to generate jobs for our community," Mr Ward said.

"I can't think of a better investment than local sport which will generate jobs as we promote the region for sports tourism.

"By investing in grounds like Artie Smith you can generate events that bring people to the region."

Councillor John Wells said the council had set aside $6 million for the project, bringing the total funds to $14 million.

"The facility is going to be an outstanding playing surface for Aussie Rules, cricket, croquet and other sports," he said.

"It will be fully enclosed with beautiful facilities, so it can host ticketed events."

Artie Smith Oval was the chosen venue for the 2020 Koori Knockout, which had to be postponed due to COVID-19.

Works on the oval will not begin until after the Knockout has been held.

Representatives from the Bomaderry Tigers said they were "very grateful" for the funding, after a challenging year, and hope the new facilities will encourage more people to lace up their footy boots.