The Berejiklian government says it has awarded a demolition and construction contract for a new stadium at Moore Park, setting the stage for an election brawl over its determination to build new elite sporting infrastructure.

After winning approval from the Department of Planning and Environment to begin demolition of Allianz Stadium at Moore Park on Friday, the state government indicated it had immediately signed a contract with Lendlease not just to demolish the existing structure but also to build a new stadium for $730 million.

NSW Treasurer Dominic Perrottet and Minister for Sport Stuart Ayres announce the demolition and reconstruction of the Sydney Football Stadium. Credit:James Brickwood

Although planning approval was granted only for the demolition of the stadium – and not for the construction of a new one – Sports Minister Stuart Ayres said the government needed to sign the one contract.

“I can’t separate this contract into two stages to reflect the planning process,” Mr Ayres said. “We have two stages of construction. One contract.”