However, the overhaul of the Gabba stadium will be solely funded by the Queensland government, while the federal government will create a new 17,000-seat Brisbane Live arena at Roma Street.

Another $2 billion has been earmarked to upgrade existing venues and build smaller facilities, the ABC reported on Friday.

Prime Minister Anthony Albanese will visit Brisbane on Friday for the formal announcement alongside Premier Annastacia Palaszczuk.

“This will leave a really lasting legacy for Queensland,” he told local radio station 4BC.

“It’s an investment that will produce a return with increased economic activity, increased visitors … Queensland is such a fantastic tourist destination and this will really showcase the state.”

Albanese said the international focus in the years leading up to the Games would be on Brisbane and there would be a long-term economic benefit.

“I think it is so positive – I know that the Queensland government is up for this and I think Queenslanders are up for it as well.

“We’ll see that green and gold runway – they’ll be training hard to be able to perform at the Olympics and the Paralympics.”

The Prime Minister said the federal government would kick in more than $3.4 billion, cementing Brisbane as a global city.

“We’ve worked really closely with Annastacia and her team to make sure that we get the right projects in the right places, so it’s not just the big venues, it’s upgrades for existing venues.”

Federal Sport Minister Anika Wells said the agreement would result in a 50-50 funding split, although the state government would go it alone on the Gabba redevelopment.

“It’s an agreement between the federal government and the Queensland government about how we’re going to pay for all of the infrastructure that the southeast Queensland venues will need to put on the 2032 Games,” she told ABC radio.

“We have decided that the Australian government are going to pay for Brisbane Live, and the Queensland Government are going to fund their redevelopment of the Gabba.”

Wells said the funding arrangement would allow the creation of the Brisbane Live venue.

“Ultimately, it’s almost exactly 50-50 split when it comes to the money,” the minister said.

“The live venue, being the legacy piece after the Olympics and Paralympics have packed up and moved on, will allow Brisbane people to experience live music and culture at that place for decades.”