Sydney's Leichhardt Oval is set to receive a $40 million funding boost that will go towards critical upgrades for the historic ground.

The joint investment includes $20 million from the Albanese government, $10 million from the NSW government and $10 million from the Inner West Council.

The fund will go towards increasing seating capacity by 3000 seats, developing a new northern grandstand and new female-friendly change rooms.

It will be led by the council and draw on the council's masterplan for the oval.

Leichhardt Oval is one of two home grounds for the West Tigers NRL side.

The announcement comes two days before the Tigers are set to play the Gold Coast Titans at the ground.

The oval hosts NRL, NRLW and Women's A League matches, along with amateur and junior rugby league and soccer games.

In light of the announcement, Prime Minister Anthony Albanese said his government understood "the important role suburban grounds play in the quality of life for Australians".

"This investment will not only be great for the Wests Tigers, but will see Leichhardt Oval continue to be a hub for school, women and girls' sport," he said.

"Leichhardt Oval is a place where the faithful can go along and cheer their local sporting teams, and this funding from all three levels of government will ensure that spirit is preserved."

The Wests Tigers have long held concerns for the condition and facilities at the ground.

The oval has been flagged as having insufficient change rooms to host NRL men's and women's double-headers, features long queues for refreshments, and pales in comparison to other Sydney stadiums when it comes to corporate and media facilities.

Wests Tigers chief executive Shane Richardson called for millions of dollars for an upgrade to the oval earlier this year, but NSW Premier Chris Minns blocked the request due to the state's debt level. 

Leichhardt Oval's status as a part-time NRL venue also influenced the premier's decision.