ANZ and Allianz Stadiums will be demolished and rebuilt at a cost of more than $2 billion.
Fairfax Media reports the NSW cabinet approved the move on Thursday.
The Berejiklian government's stadiums package was originally priced at $1.6 billion by former premier Mike Baird two years ago, however, that figure has risen to $2.3 billion.
Allianz Stadium, home to the Roosters (NRL), Waratahs (Super Rugby) and Sydney FC (A-League) will be demolished and rebuilt in 2018 with the redevelopment of ANZ Stadium slated for the following year with capacities of 45,000 and 80,000 respectively.
ANZ Stadium is expected to take three years to rebuild while Allianz will be completed by 2019, a generous timeframe indeed.
Staggering the development times will allow the NRL Grand Final to continue be held at the former Olympic stadium while Allianz Stadium is rebuilt.
The Roosters, Waratahs and Sydney FC were believed to be opposed to redevelopment due to the disruption displacement would cause.
Where these teams will play their fixtures is yet to be confirmed.
Baird had previously wanted money prioritised to ANZ Stadium, however, significant funds have now been given to both.
However, NSW opposition and Labor leader Luke Foley does not support the redevelopment of Allianz Stadium and has stated he does not agree with the application of funds to the project.
More to come.