Narooma Lions AFL team and the Narooma Devils rugby league team will both benefit from a second playing field at Bill Smyth Oval.
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Eurobodalla Shire Council secured $660,000 from the NSW Government's Stronger Country Communities Fund Round Four and will make up the difference to complete the $1 million project.
Land to the south of the oval, currently covered in grass, will be used to accommodate the second field, which will include new lighting, perimeter spectator seating, drainage and irrigation.
It is one more progression towards turning Bill Smyth Oval into a premier sporting precinct.
The council previously obtained approximately $500,000 from the Australian Government's Local Roads and Community Infrastructure Program to build a new multipurpose court and upgraded carpark at the precinct.
The new combined netball and basketball court will be built next to the tennis club and include fencing, lighting, line marking and reverse goals to accommodate both sports, as well as additional parking spaces along McMillan Road.
Eurobodalla Council's recreation manager Nathan Farnell said both projects were identified in Council's Bill Smyth Oval masterplan, which was developed in close consultation with user groups and wider community.
"The Narooma AFL and rugby league communities have been generously sharing the one playing field at Bill Smyth for decades, so the new field will provide greater flexibility for training nights and game days," Mr Farnell said.
"Main competition matches for both sports can still be held on the primary field to take advantage of the existing sporting amenities and better spectator viewing options."
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The Stronger Country Communities Fund is aimed at improving the facilities in regional communities.
Minister for Regional NSW Paul Toole said the NSW government was committed to supporting community projects making a difference to everyday life.
"The NSW Government is investing record amounts to deliver the infrastructure needed to stimulate economies," he said.
"Whether it's revitalising the local town hall, upgrading mountain bike parks or building new sporting facilities, I know how much of a difference these projects make."
Work on the car park has already started and construction on the new multi-sport court will begin in March. Both projects should be complete by the second half of 2022 and the new playing field by the end of 2023.