$100m for AAMI Stadium redevelopment
It will also provide $2.5 million each for the state's two AFL clubs in this week's state Budget.
The Government's contribution to the stadium's redevelopment will help to enhance the roof to provide greater shelter and improve dining and toilet facilities.
It will also build a new convention centre and western grandstand upgrade, improve stadium entrances, build new corporate suites and expand administration offices.
Premier Mike Rann said the Government was supporting the redevelopment because it was the only venue in the state that could seat more than 50,000 for a range of sporting and major events.
"This redevelopment will bring AAMI Stadium up to international standard," he said in a statement.
"It will not only enhance the experience for spectators and users of AAMI Stadium, it will put us in a stronger position to compete for major events such as World Cup soccer matches."
State treasurer Kevin Foley said it was the view of the SANFL, the AFL and both the AFL clubs that "a redevelopment of AAMI Stadium is the best result for football in South Australia".
SANFL chief executive Leigh Whicker welcomed the announcement.
"This redevelopment is indeed the logical solution for providing the South Australian community with a symbolic, world class sports and entertainment stadium," he said in the statement.
Recreation and Sport Minister Michael Wright said the state government was also supporting Port Adelaide and the Crows by matching a commonwealth commitment of $2.5 million to each club.
"AAMI Stadium draws over one million spectators every year and most of those are Port Adelaide or Crows supporters," he said in the government statement.
"It makes sense for us to support the teams who attract the majority of patrons through the gates."
"We are enormously grateful for the government backing of what is the biggest project in the history of the club," AFC chief executive Steven Trigg said in a statement.
"In an extraordinarily competitive industry, this helps very much with our football plans - but also in fulfilling our desire to be even more inclusive and engaging with supporters and the community in general."
The funding will go towards the club's planned major extension and facilities redevelopment.
Mr Trigg also said the government's decision to contribute to the AAMI Stadium redevelopment, would "benefit many thousands of South Australians".