THE Federal Government will contribute $20 million towards an upgrade of Parramatta Stadium.

The upgrade will increase the stadium's capacity to 24,000, a welcome change for the stadium's two home teams - the Parramatta Eels and the Western Sydney Wanderers.

With the Deputy Prime Minister Anthony Albanese stuck in foggy weather conditions in Canberra, it was left to newly appointed Minister for Sport Senator Don Farrell to make the announcement that much of western Sydney had been awaiting.

But the funding was not the only announcement Senator Farrell made, announcing his intent to sign up to become a Parramatta Eels member, having heard only good things about the team.

Parramatta federal Labor MP Julie Owens said the success of the city's NRL and A-League teams signalled the need for the Federal Government investment in the stadium.

"Parramatta Stadium is an iconic western Sydney landmark, but has been struggling to meet the needs of a growing region," she said.

"This upgrade will ensure western Sydney residents have access to world class sporting facilities.

"Sports fans and local sporting teams will benefit from the upgrade, which will allow players and fans to watch and play their favourite sport closer to home at their favourite venue."

Parramatta Eels chief executive Ken Edwards said while the upgrade was a good start, it was just the first step towards delivering to the people of the region a stadium with modern facilities and a capacity of 40,000.

"When built for the Eels in 1986, Parramatta Stadium was state of the art," he said.

"Fast forward to 2013 and the venue is in need of ­significant work on capacity, associated facilities and services.

"The Eels have an ambitious strategic plan to achieve significant growth over the next few years."

The Eels have called the stadium home since it was Cumberland Oval in 1947.

Wanderers executive chairman Lyall Gorman said the club would outgrow Parramatta Stadium over time.

"We had three sellout crowds last season and were stretched to the limit on many occasions," he said.

"We think the corporate facilities don't best serve the needs of how we'd like to present a game-day experience.

"We've made it very clear, and the fanbase have told us that they see the spiritual home of the club at Parramatta, but we've made it clear that financial viability and stability is a goal of the club and part of that comes out of the venue."

Parramatta state Liberal MP Geoff Lee said the funding was a recognition of the Wanderers' "amazing success" and the importance of the continuing Eels' commitment to the stadium as their home ground.

"Both the Wanderers and the Eels predict growth in spectacular numbers over the next decade and this upgrade will help cater for future demand," he said.

"This upgrade strengthens the stadium's status as western Sydney's premium venue for the 21st century.

"Parramatta is a major transport hub, making it convenient for fans in western Sydney.

"It offers pre- and post-match entertainment facilities and was the most popular choice for Wanderers fans.

"Parramatta is the 'capital of western Sydney'."

WHAT THE FACELIFT INCLUDES

* Upgrading the Eastern Stand, including a new concourse, new food, drink outlets and better bathrooms

* New corporate hospitality suites and a 500-seat function room, a new kitchen and new lifts

* Better facilities for players including an upgrade of the change rooms and gym in the western grandstand, and an extension of the training field to full size

* An additional 3300 seats on the northern and southern mounds, bringing the stadium capacity to 24,000