The new stadium is being built next door to Olympic Park - which was Victory's home for the 2005/06 season and for three matches in 2006/07.

Victory played 10 of their home matches at Telstra Dome which is traditionally used mainly for AFL matches. Intruigingly however, the side struggled to win matches at Telstra Dome - they won just five there.

The 31,000 seat capacity stadium is a $268 million project by the Victorian state government and is purpose-built for sports normally played on rectangular fields such as football, rugby league and rugby union.

"This is the best possible deal for soccer, rugby league and rugby union fans," Mr Bracks said. "The new stadium will be a significant addition to Victoria's world-renowned sporting facilities. For the first time Victoria's (football) fans will be able to watch A-League games at a purpose-built stadium," said Victorian premier Steve Bracks.

Victory chairman Geoff Lord concurred and said he was pleased that the stadium will have an increased capacity from the originally-planned 20,000 saying: "The increase in the size of the stadium to a minimum of 31,000 will ensure that Melbourne Victory fans have the best opportunity to support our club in two great stadiums here in Melbourne – Olympic Park and Telstra Dome."

Melbourne captain Kevin Muscat is looking forward to the move saying, "What an opportunity for us. We've got the best of both worlds. We get to play in a great purpose-built stadium and then get to move the big games, the finals, and the big drawing games to Telstra Dome.

"[It's] three years, I'll have to keep my fingers crossed, I'll hope to still be around by then. I'll be the first to know when it's time. At this point in time I feel good."