Federal Cabinet had been considering the funding for some time but signed off on it — at levels slightly reduced — earlier this week. It is understood FFA sought more than $50 million but the economic crisis tempered the original expectations. Still, the total amount approved is a massive commitment. The FIFA executive will meet in Tokyo on December 19 to ratify the 2018 and 2022 selection process, which is in some disarray. It had been thought that Australia's bid would benefit from FIFA's original plan to announce the hosts for the two World Cups at the same time, but that joint vote plan has been temporarily deferred after some of the executive objected to an 11-year lead-in time for the 2022 event.

FFA will use the funding to set up the official bid team with a small, but influential executive led by FFA chairman Frank Lowy, and push Australia's case to host the month-long tournament, which promises to boost tourism and attract a broadcast viewing audience in excess of 26 billion. The last World Cup in Germany attracted two million international visitors, 3.3 million spectators at games and was broadcast to 214 countries. It is anticipated that FFA will send representatives to Tokyo to gain clarification about the voting process and formally introduce its candidature.

Government ministers have strongly supported the bid as a way to promote Australia and they said the money was a clear signal that the Government was fully behind Australia's bid. "This sends a clear message to the football world that Australia is serious about hosting the 2018 FIFA World Cup," Sport Minister Kate Ellis said.

"The Australian Government will work in partnership with the Football Federation Australia and state and territory governments in a united approach to building the strongest bid possible for the 2018 event." It is expected that the bid will be lodged at the end of 2010 with a FIFA decision expected in March 2011. Ellis said the bid faced huge challenges but the country's record in hosting large-scale sporting events would hold it in good stead.

"Australia has an exemplary record in hosting international sporting events, having held the Olympic Games twice and Commonwealth Games four times," she said. "Our sporting infrastructure is also world class, with venues such as Melbourne's iconic MCG and Telstra Dome; Sydney's ANZ Stadium and Football Stadium, and Brisbane's Suncorp Stadium matching the world's best." Officials from Australia's other football codes have swung behind the bid, with the AFL preparing to release the MCG for World Cup matches and transfer AFL matches to Docklands, while the new rugby league stadium at Olympic Park would be expanded to around 40,000 capacity.