The Government has announced $2.5 million grant towards the cost of Whangarei's new rugby stadium.
The city is set to host two Rugby World Cup games in 2011.
Building has begun on a new $16 million stadium at Okara Park, funded by Northland ratepayers, which is being built to Air New Zealand Cup standards.
The Minister for the Rugby World Cup, Murray McCully, says the extra money will be used to bring the stadium up to World Cup standards.
Northland civic leaders say without the Government's help they would have had to seek sponsorship and donations to top up the cost of the stadium construction.