Announced as part of the state budget for 2017/18, the funding will guarantee that the Australian Open stays in Melbourne until at least 2036.

With a record 728,000 fans attending this year’s Australian Open, this next stage of development will build the facilities needed to attract more visitors and secure more major events.

The third stage will feature a new multi-purpose 5,000-seat sunken show court and arena, central terrace with a new elevated outdoor public space, a function and media centre, broadcast studios, central kitchen, loading dock and logistics hub.

Fans will find their way around the courts easier with new and improved pathways, new scoreboards and signage. The southern entry will be realigned and the northern entry upgraded as part of the works, improving access for everyone.

The project will create 600 construction jobs and support the tourism and hospitality industry as more people travel to Victoria to attend major events.

Together with works currently underway at Melbourne Park, this brings the government’s investment in the precinct to over half a billion dollars.

Construction work is moving ahead on the new Rod Laver Arena eastern entry pod and world-class player and artist facilities, while the newly opened Tanderrum footbridge safely ushered hundreds of thousands of tennis fans from the city to the heart of the action.

Stage 2 is set to be ready for the Australian Open 2019 and construction of Stage 3 will begin in the same year.