The New South Wales Government is considering a $A1 billion plan to restore the Sydney Opera House.
Premier Nathan Rees says it is a long-term plan and any restoration will need both state and federal funding.
Mr Rees told the Daily Telegraph the project is now before a budget committee.
The Commonwealth has also agreed to look at the project after being approached by the State Government to fund half the cost.
The ABC reports the seven-year project centres on a massive engineering project to lower the floor of the Opera Theatre by 18 metres. It will not change the building's external appearance.
Other work includes fixing design flaws to eliminate seats with only partial views of the stage, expanding the orchestra pit, providing disabled access and installing a new air-conditioning system.