ADELAIDE Oval will become the new home of AFL football in South Australia under a deal brokered by the state government with the SANFL, AFL and the South Australian Cricket Association.

The three sporting bodies signed an in-principle agreement in Melbourne last month which will see AFL played at a revamped Adelaide Oval within four to five years.

AFL CEO Andrew Demetriou has hailed the agreement as "a wonderful result for AFL football" and "a fantastic result for fans of our game in South Australia".

The SA government has pledged $450 million to transform Adelaide Oval, which is already undergoing refurbishment, into a world-class 55,000-seat stadium.

The government will seek up to $150 million in financial assistance from the Federal Government, with the remaining $300 million to be raised by the redistribution of funds for the proposed AAMI Stadium upgrade and West Lakes tram extension.

The parties will seek to win federal support by making Adelaide Oval FIFA compliant as Australia bids to host the World Cup in 2018 or 2022.

Under the agreement, SANFL chief executive Leigh Whicker and SACA president Ian McLachlan will head up two working parties to examine the detailed financial and structural requirements of the redevelopment.
 
SA Premier Mike Rann said the state government was seeking a legally binding agreement for the Adelaide Oval site from both the SANFL and the SACA by July 1, 2010.

"We are prepared to make this significant investment in the State's bests interests, but if any of the parties walk away from the deal - this money is off the table for good," Rann said.

"The Deputy Premier [Kevin Foley] has been informally working with both codes to encourage them to co-operate in exploring the advantages of reaching an agreement. 

"As a result, for the first time in more than 35 years, we have our two peak sporting bodies working together again.

"Now the Government will join them in working towards delivering a world class sporting and entertainment venue in the centre of Adelaide at an iconic ground loved by sports fans here, interstate and internationally."

South Australia's current home of football, AAMI Stadium, will remain intact but will be downgraded to a secondary venue.

Adelaide Football Club, which only recently moved into its new $21million facility at AAMI Stadium, will keep its training and administration base at West Lakes.

The land surrounding the stadium will be re-zoned, allowing the SANFL to sell off parts of the area for commercial purposes.

The design features of the new Adelaide Oval include retaining the pavilion-style nature of the ground, the hill at the northern end, the century-old scoreboard and a footbridge linking the venue to the central business district.

Demetriou, who facilitated talks between the SANFL and the SACA, said, "Sporting fans in the modern era are demanding the very best in facilities to enjoy their sport, not only at their venue of choice, but also seeking easy transport options and the very best in entertainment and dining options before and after sport.

"Once all the issues are resolved, football and cricket fans, and all people who now use the Adelaide Oval for any sporting or entertainment event, will have a facility that will rival any in the world, and make South Australia a leader across the country with this venue."

Wednesday's announcement comes just a week after the State Opposition revealed its plans for a $1 billion city-west stadium.