'Give us an A-League team and we'll build a 15,000-seater stadium in Melbourne'

Dandenong could be home to a new 15,000-seat sports stadium under a bold bid for a new A-League team.

The $170 million dollar plan has the backing of businessman Gerry Ryan, but the state government is yet to commit.

"It's about bringing, uniting the community together, young kids that are standing around the streets that can come have a home," Mr Ryan told 9NEWS today.

The Jayco Caravan magnate is spearheading the campaign to secure the 11th A-League franchise in Melbourne's fast growing south-east suburb.

He's teamed up with former Socceroo and one-time Dandenong local Vince Grella.

"It gives me goosebumps just thinking about having our own team," Mr Grella said.

"We need more teams, we need competitive teams, and this area ticks all of the boxes."

The consortium is using the sports ground to compete against 10 other bids for two new A-League licences.

Dandenong council will gift a parcel of land just metres away from the train station where the multi-purpose facility would be built.

"They love football, it's the heartland of football in Australia, I believe," councillor Jim Memeti said.

But the consortium admits early negotiations with the state government around the $170 million price tag have been slow.

"It wasn't all that positive from the Treasurer, he [Tim Pallas] said 'I haven't got anymore money for another stadium'," Mr Memeti said.

A decision on the stadium’s future hinges on Dandenong being selected as one of the two new franchises in October.

The Victorian sports minister John Eren said the government will wait until a decision by the FFA is made before committing.

"I'd like to see stadiums built in a number of locations...we'll certainly make sure we invest accordingly," Mr Eren said.