Victoria is likely to host the 2026 Commonwealth Games, with Premier Daniel Andrews confirming the state government is in exclusive negotiations with the organising body.
Mr Andrews said the deal was only finalised on Tuesday night and would be primarily an event hosted by regional Victoria.
"The flow-on benefits of this will be enormous when it comes to job creation, investment in our regions, the legacy benefits including housing will be very significant," Minister for Regional Development Marry-Anne Thomas said.
Mr Andrews said the games and a simultaneous arts and culture festival would reassert Victoria as the sporting and events capital of the country.
Commonwealth Games Australia chief executive Craig Phillips said while there was still work to be done to secure the event, the exclusivity period put Victoria in a strong position.
"We've got some clear air to have the discussions and continue the work, which is a good thing, because you're not worried about essentially a competition," Mr Phillips told ABC Statewide Drive.
"We're actually there as essentially the preferred candidate right now."
The opposition has shown its support, with Opposition Leader Matthew Guy writing on social media that he was "100 per cent" behind the bid.
"Important part of our plan to recover and rebuild. Great for regional recovery," he wrote.
Infrastructure would be 'lasting legacy' for regional Victoria
The exclusivity agreement will last for two months as the Victorian Government and the Commonwealth Games Federation negotiate on the commercial aspects of the event.
Mr Andrews said while the Games were not a certainty, the government was confident they would secure the event.
"This is not binding. If at the end of it we decide not to go forward, then we don't go forward," he said.
"But we're confident, we wouldn't sign it if we didn't think we could get an outcome."
An alliance of 11 regional Victorian centres, including Shepparton, Bendigo, Geelong, Traralgon, Ballarat, Warrnambool, Nagambie, Wodonga and Yarrawonga had previously launched a campaign for Greater Victoria to host the 2030 games.
Mr Andrews said some regional locations such as Geelong, Ballarat and Bendigo would be "self-starters" that already had the necessary facilities to host events.
However Mr Andrews conceded that further infrastructure funding would be needed to prepare regional locations for the games.
"There would need to be further investments made and that's how I see them, not as a cost," he said.
"That infrastructure is then there as a lasting legacy."
Mr Phillips said a successful bid to host the 2026 Games would provide a catalyst for upgrades and new construction in regional Victoria.
"There is a need for some [regional venues] to be upgraded for future community use, not just for a 12-day sporting competition," he said.
"That investment in that infrastructure development becomes important because of what it leaves behind for the community."
Mr Phillips said he did not expect regional communities to have to contribute funding towards the games.
Recent Commonwealth Games have been mired in financial controversy.
The 2010 Delhi Games cost a reported $15 billion and was marred by a corruption scandal, while the 2022 hosting rights were stripped from Durban in South Africa by the Commonwealth Games Federation due to financial constraints.
Regional council eager for Commonwealth Games opportunity
Wodonga Councillor John Watson said the region would make the perfect host due to its central location to Melbourne and Sydney and easy access via air and rail.
"I can see Wodonga and our sister city Albury being involved," he said.
"We have some of the best assets in sporting grounds in the state."
With the construction of multi-million dollar sports facility Baranduda Fields scheduled to be completed in 2023, Mr Watson said the city should be in with a fighting chance.
He said the economic benefits to the region would be "unmeasurable" as it continued to recover from the impacts of the 2019/20 bushfires, multiple border closures, and the ongoing effects of the pandemic.
"It's going to bring so much more wealth to our city, people staying extra nights, people buying coffee and food … but also putting Wodonga on the map again," he said.
