The government will give Cape Town R1,9 billion towards building a 68000-seater stadium in Green Point for the 2010 Soccer World Cup.
The money, from the national treasury, comes from the R8,4billion earmarked for 2010 stadiums, said Ian Neilson, Cape Town mayoral committee member for finance.
"The national treasury committed itself to this amount after the city and provincial government submitted a joint business plan," he said.
The stadium would enable Cape Town to host a World Cup semifinal match.
The city will provide R400million and the province R100million, making a total of R2,43billion, but an additional R60million might need to be raised, Neilson said.
The city has provisionally reduced the projected cost to R2,49billion from R3,2billion.
Neilson said the lower figure would be possible if the national treasury accepted a proposal to underwrite the financial risks of the construction.
Costs were also lowered by the redesigned roof, which would be non-retractable.
Construction is scheduled to begin in January. - Sapa