NSW Premier Mike Baird says the government's acquisition of ANZ Stadium from an infrastructure fund manager will provide the state with the most flexibility to develop the venue.
The Baird government will reportedly pay up to $220 million to buy out the final 15 years of the Olympic Park stadium's ownership from Infrastructure Capital Group.
Stadium Australia Group will continue to oversee daily operations at the stadium.
Mr Baird told reporters the price was not finalised but that taxpayers would benefit most from the deal.
He said future profits from the stadium would no longer go to private interests.
"It does enable us, by purchasing, to have as much flexibility as we can to develop the best possible facility," Mr Baird said.
"There are future profits through the terminal lease that will come back to repay it."
Mr Baird said upgrading sporting infrastructure had been overlooked in Sydney for too long.
The government has already outlined its plans to spend $1.6 billion rebuilding Parramatta Stadium, turning ANZ Stadium - the 2000 Olympic Games main stadium - into a true rectangular ground and renovating Allianz Stadium in Moore Park.
This figure does not include the cost of buying back ANZ Stadium.
"We deserve the best events," he said.
"They are going to be delivered."