Labor pledged $2.2 million towards redeveloping the clubhouse to include a restaurant, training rooms, auditorium, caretakers residence and observation tower, during a visit from the Infrastructure Minister Anthony Albanese and Paterson candidate Jim Arneman on Friday. Birubi president Rob Duff said the announcement had bolstered club morale after working for close to seven years to develop plans for the site.

"I had no idea how much the government was planning on handing over until Friday and when I found out, I was taken aback," Mr Duff said.

"I know we don't have the money in the hand but I think it has revitalised the club just knowing we are a bit closer."

A development application was lodged with Port Stephens Council in January and the club is in consultation to develop a final design, according to Mr Duff. He said once a development application had been approved and a tender selected to develop the project, construction should take five or six months.

"My wish would be that construction would start after the peak holidays in January and it would all be done by this time next year," Mr Duff said.

Port Stephens Council will manage the redevelopment and the funds, which came as part of the federal government's Regional Local Community Infrastructure program.