Eddie McGuire proposes $1 billion new stadium near MCG

A $1 billion football stadium would be built next to the MCG under an ambitious proposal Collingwood President Eddie McGuire has put forward, according to a media report.

Etihad Stadium would be demolished to make way for "Victoria Stadium", which would fit 60,000 people and have a retractable roof, the Herald Sun reported.

The plan to revamp the Olympic Park Precinct would reportedly require Hisense Arena to be shifted above the railway lines while Richmond station would need to go underground.

Eddie McGuire has called for those behind the anti-Muslim banner to be banned for life. Photo: Mathew Lynn

While the Andrews government has been briefed on McGuire's plan, it is understood not to have received a formal proposal.

A government spokeswoman said: "The Andrews Labor Government encourages innovative ideas that will keep the Melbourne and Olympic Park stadiums the envy of the world."

"If we want to maintain Victoria's reputation for having the best of everything, it's worth considering how to make the most of our city's premier sports and major events precinct."

Under Eddie McGuire's plan, Etihad Stadium would be demolished. Photo: Emily Godfrey

The future of Etihad Stadium and any possible redevelopment lies in the hands of the AFL, who plan to buy back the facility in ten years.

Mr McGuire told the Herald Sun he had discussed his idea with the Melbourne Cricket Club, city planners, developers, financiers and the Victorian Government.

"The talks are serious — and it gives us an opportunity to decide what the next plan is for our city," Mr McGuire was quoted as saying.

The paper reported government loans, infrastructure bonds and the sale of public land would help fund the project.

"The AFL have gone into a fair bit of detail on the rebuild of Etihad Stadium, which is a fair and reasonable position, but we're looking at an opportunity to bullet-proof the AFL, particularly the Victorian-based clubs," Mr McGuire told the paper.

The stadium would be managed by a join AFL-MCC super trust, Mr McGuire said.