The rebuilding of Stadium Southland will begin on Wednesday.
The stadium collapsed under heavy snow 10 days ago. The velodrome was the only part left standing.
Although the facility was fully insured, there had been some speculation that it could take as long as a year and a half to reconstruct.
New Zealand Insurance has confirmed, however, that a claim has been accepted.
The chairperson of Southland Indoor Leisure Centre Charitable Trust, Acton Smith, says that's brilliant news and rebuilding can start on Wednesday.
The stadium's general manager, Nigel Skelt, says clearing of the demolished stadium is likely to take another three weeks.
NZI plans to pay out between $20 million and $25 million.