The New South Wales Government has announced a billion-dollar overhaul of the state's sporting infrastructure, including plans to build new stadiums at Parramatta and Moore Park.

Premier Mike Baird said it was the biggest investment in sporting and major event infrastructure in NSW since the Sydney Olympics.

The first project in the package will be a new 30,0000-seat stadium at Parramatta, in Sydney's west, which would be completed by 2019.

The plan also includes a new rectangular stadium at Moore Park in Sydney's east, seating between 50,000 and 55,000 people, a new indoor arena near the CBD, an outer-western Sydney sporting venue and the completion of the SCG upgrade.

The Government is looking to acquire the lease of Olympic Stadium to redevelop it, which could potentially include building a retractable roof.

It said $600 million had already been set aside for the package as part of Rebuilding NSW and it would allocate more funding in the future.

Mr Baird said the package was dependent on sporting codes agreeing to put on major matches in NSW and he wants the NRL grand final to remain in Sydney.

"The longer we can keep it here, the better, and the critical part of this process is to ensure — whether it be the NRL, whether it be the soccer, whether it be Rugby Union — this city will get the best events it can for the next generation," he said.

Plan about putting NSW 'back in the game'

Sports Minister Stuart Ayres said for too long, Sydney and NSW had "fallen behind the rest of the pack".

"We are setting forward a pathway so that every sports fan can come to a stadium that suits their needs, that suits the sports they are passionate about," he said.

"It's time Sydney and NSW got back in the game."

Parramatta Mayor Scott Lloyd welcomed the news, saying the existing Parramatta stadium, built in the 1980s, desperately needed to be replaced.

"For so long we've been waiting for a world-class stadium and we've got it now in Parramatta," he said.

He said because of its location in the heart of Parramatta, the new Parramatta Stadium would be a huge drawcard for sports fans who want a complete night out.

"Parramatta is an ideal destination," he said.

"We're going to have light rail running straight past, if you want to walk out of the stadium you can be seated at a restaurant within 10 minutes.

"We've got great parking, great facilities, great public transport. What better place to have a world class stadium?"

David Borger, the western Sydney director of the Sydney Business Chamber, said it was great news.

"This investment by the Government will supercharge the economy of this area," he said.