ANZ Stadium is firming as the likely main venue for the proposed western Sydney AFL club after the NSW government decided against funding a re-development of the adjacent Sydney Showground.

The AFL remains committed to having a second Sydney team join the competition in 2012, a year after the Gold Coast franchise.

The cash-strapped NSW government informed the AFL earlier this month it would not contribute towards the planned $100 million redevelopment of the Sydney Showground in the Olympic precinct at Homebush.

The as-yet unnamed Sydney team will use a new facility in the outer western suburb of Blacktown as its training and administrative base.

But the Blacktown venue will only have a capacity for 10,000 spectators, making it too small to host AFL games unless it is redeveloped.

An AFL spokesman said the 80,000-capacity ANZ Stadium was one of several options being considered by the league as the home venue for the western Sydney club.

The Swans have already played numerous matches at ANZ Stadium, with the four games there in 2008 attracting average crowds of more than 45,000.

AFL NSW/ACT general manager Dale Holmes said the funding decision by the state government did not alter the plan to have the second Sydney team up and running by 2012.

"The process in establishing that team will unfold over the coming months with one of the key tasks being the establishment of a local western Sydney advisory committee," said Holmes.

"We currently have more than 35 local business, community and sporting identities who are keen to see the establishment of a new national sporting team in their region.

"The AFL has invested significantly in the development of the code to build community infrastructure and community sporting opportunities to the families of western Sydney and we will continue to do so as we move towards establishing a team."

Swans officials preferred to stay out of the debate surrounding the ramifications of the NSW government's decision and the base for the second Sydney team.

Sydney coach Paul Roos didn't think the state government's decision would necessarily impact on factors such as junior development.

"But if you are talking about a second team who have got no ground to play at, it may impact on their ability to bring that second team in, but I'm not privy to enough information," Roos said.

ANZ Stadium managing director and chief executive Ken Edwards was measured with his comments on the situation.

"We have a very strong relationship with the AFL and Sydney Swans and continue to work together with them to grow the game in Sydney," Edwards said.

"Since 2002, the AFL and the Swans have been able to connect with a new and large group of spectators by playing at ANZ Stadium."

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