Sport and Recreation Minister James Merlino visited the town to announce the contribution to the project as part of the Government's community facility funding program.

The precinct is to be built opposite the Romsey Recreation Reserve on six hectares (15 acres) of undeveloped Romsey Primary School-owned land.

It will include a new football and cricket ground, an athletics track and soccer pitch, a club facility and pedestrian links to Romsey Park.

Romsey Primary School principal Joan Gibbs said it was a fantastic opportunity to secure sports facilities on the school grounds that could be shared by the community.

"It's the kind of thing we could not have afforded on our own, but when you work co-operatively with stakeholders and the council, it shows what you can achieve is outstanding."

Macedon MP Joanne Duncan said the facility would become a vital hub for the community.

Macedon Ranges Council has contributed $466,000 and community groups have added another $60,000.

The redevelopment is expected to be completed by late 2010.

Mayor John Letchford said the precinct would be a welcome addition for the community of Romsey.