Newcastle's NRL and A-League teams have received a boost with the NSW government granting a further $20 million to redevelop and upgrade EnergyAustralia Stadium.

The three-stage development will modernised the dated stadium facilities and replace the existing western grandstand, increasing the crowd capacity from 33,000 to 40,000 by the end of 2010.

Newcastle NRL club chief executive Steve Burraston said the facelift will bring Newcastle's stadium to a world-class standard.

"This will put Newcastle on the map as a world class sporting and entertainment venue," said Burraston.

"In a time when rugby league clubs are struggling to survive the new stadium will give us an opportunity to sell better seating and corporate facilities to a larger audience and assist with our longevity.

"This puts us in the same league as the likes of the Broncos who have Suncorp Stadium or the Titans who have Skilled Stadium."

Construction has already begun on stage one of the developments, with stages two and three to continue through until the end of 2010.

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