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The NSW government will tip funding into suburban Sydney stadiums in lieu of their scrapped ANZ Stadium redevelopment.

The NSW government has pledged to inject additional funding into suburban Sydney sports grounds, saying it wants to "move away from the big stadiums".

With the redevelopment of Sydney's ANZ Stadium scrapped in May, NSW Treasurer Dominic Perrottet on Monday confirmed funding in this month's state budget would instead be funnelled into local grounds, including construction and upgrades.

Mr Perrottet said this would include upgrades at Kogarah Oval in the south, Brookvale Oval on the northern beaches and Penrith Stadium out west, as well as the consideration of a new stadium in Liverpool in the southwest.

"It's great for those stadiums to get a revamp but they also provide a great community facility, so we'll be looking to have these grounds as not just something for professional rugby league but also community sport, local markets and things like that," Mr Perrottet told 2GB radio.

"We've said we'll work through this on a case-by-case basis but we do want to move away from the big stadiums and try and ensure local communities over time have great facilities."

It comes after the Australian Rugby League Commission approached the state government with a proposal on rejuvenating community grounds in lieu of the ANZ Stadium upgrade.

ARLC chair Peter V'landys has since his appointment last year, championed the need for suburban ground upgrades, saying they benefit local communities.

The ANZ Stadium upgrade was expected to cost $810 million.

"Part of the philosophy here is that we keep those grounds like Belmore, Kogarah, Leichhardt, Brookvale and Penrith open and thriving," Mr Perrottet said.

The NSW budget will be handed down on November 17.