AFL chief executive Gillon McLachlan hopes a new waterfront stadium in Hobart can play a role in a future Tasmanian outfit becoming a "destination club" in the national competition.
Prime Minister Anthony Albanese has pledged an additional $240 million to the state government for the project at Macquarie Point, where a $715 million multi-purpose stadium will be built.
It paves the way for a 19th club licence to be granted to Tasmania, with McLachlan forecasting a decision in the coming days.
Hawthorn captain James Sicily this week cast doubts over whether players would want to join a Hobart-based club, claiming "there's not much happening down there".
Sicily, whose club counts Tasmania's state government among its major sponsors, later backtracked as players and coaches around the competition leapt to the state's defence.
Geelong premiership coach Chris Scott said building a successful environment would be key to attracting players.
McLachlan, who welcomed Saturday's pre-budget funding announcement by the federal government, believes state-of-the-art facilities will go a long way towards making Tasmania an enticing proposition.
"For a club to compete and succeed on the national stage, it needs a home that enables and empowers it to compete from the start, on and off the field, and today's announcement gives a potential Tasmanian club that opportunity," McLachlan said.
"It is why so much work has been done between the AFL and the Tasmanian state government to ensure not just a team for Tasmania but a destination club, playing in a destination stadium, in a destination state.
"The stadium at Mac Point is the final workstream, with the question on a 19th licence to be answered in the coming days."
The AFL is yet to officially confirm a decision to grant a new club licence to Tasmania but is believed to have support from most club presidents.
Collingwood's Jeff Browne and Sydney's Andrew Pridham have previously gone public with some concerns.
Club presidents are reportedly set to meet again next week to formalise a position on Tasmania.
Devonport product and former Richmond champion Matthew Richardson described Saturday's funding announcement as a "great day for Tasmania".
Former Brisbane and Carlton player Mitch Robinson, originally from Hobart, said the new stadium and team would inspire Tasmanian children.
"You don't understand what this means to every Tasmanian kid aspiring to play AFL or any sport for that matter," Robinson posted on social media.
"So incredibly proud, a genuine platform and new pathway for the next generation! I can't wait to get involved."