NSW stadium backflip embarrasses minister

After months of pushing for an unpopular plan to build a new stadium at Sydney's Moore Park, NSW Sports Minister Stuart Ayres has suffered a humiliating slap-down.

Premier Mike Baird has confirmed his minister has lost responsibility for future stadium policy to Infrastructure NSW - a body not under Mr Ayres' control.

The decision comes after Mr Baird revealed the government would not demolish Allianz Stadium in Sydney's Moore Park and replace it with a brand new one.

Mr Ayres had reportedly been pushing for the Sydney Football Stadium to be pulled down and replaced with a new one next to the Sydney Cricket Ground.

But that landed him in hot water after Allianz Stadium's powerful tenants - The Sydney Roosters, NSW Waratahs and Sydney FC - lashed out against the plan because they would be left without a home ground for three years.

The minister suffered further embarrassment after Mr Baird on Monday said he would not allow a stadium to be built on Centennial and Moore Park trust land - a plan purportedly being touted by Mr Ayres to appease the three football codes.

On Thursday, it was revealed there would be no new stadium at all.

Allianz Stadium will now be refurbished under the government's $1.6 billion stadia strategy.

Mr Ayres said it was a great outcome for sports fans.

"I'm the first sports minister in the history of this state to deliver $1.6 billion into out-stadium assets," he said.

Despite confirming that Mr Ayres would no longer be taking care of future stadium policy, Mr Baird on Thursday said he had absolute confidence in his sports minister.

"This was never going to be an easy process. There are multiple stakeholders, multiple codes with multiple clubs, we need to ensure that we get it right," he said.

"(Mr Ayres) has done a first class job in delivering the outcome we have today," Mr Baird said.

Under the redevelopment plan, the Olympic Stadium in the city's west will be turned into a 70,000-seat rectangular arena and Parramatta Stadium will be rebuilt.

The government has also committed to $40 million in an "NRL Centres of Excellence" fund for clubs in NSW.