Perth gets go-ahead for new stadium

AFL chief Andrew Demetriou has helped break a deadlock on the development of a new 60,000-seat stadium in Perth.

The government has indicated it wants to build a new $850 million stadium at either Kitchener Park or East Perth, but the West Australian Football Commission has said it preferred the refurbishment of Subiaco Oval.

A deal was finally brokered after a day-long meeting on Tuesday that included Mr Demetriou, WA Sports Minister John Kobelke and WA Football Commissioner Neale Fong, ending months of stalemate.

The Football Commission agreed in principle to relinquish its lease on Subiaco Oval, clearing the way for the development of the new stadium.

Mr Demetriou and Mr Kobelke said it had been agreed the best solution was to build a new multi-purpose stadium, giving the AFL priority use.

"We all support the building of a 60,000-seat stadium in this state and we all support the fact that football won't be worse off, " Mr Demetriou told reporters.

To alleviate the WA Football Commission's concern that it would lose revenue if it had to relocate to a new stadium, the government has agreed to recompense it for any losses under the deal.

"We've been able to assure football in Western Australia, both the clubs and the Football Commission and grassroots football, that it will not be worse off through the construction of a major stadium," Mr Kobelke said.

The state government will decide on the location of the new stadium.