Plans are under way for a $5.7 million redevelopment of No.2 Sportsground, which would convert the rundown Cooks Hill ground to a rectangular field with concourse seating for 5000 spectators and 300 car spaces.

The facility would also house the union's administration headquarters and be a training and playing base for the major games and representative programs.

The complex would also cater for large sports tournament and community events.

The NHRU last week committed $20,000, of which half was donated by the Hawthorne Club, to the project for specialist planning advice. Newcastle City Council will make up the other $20,000 for the planning a key component if the redevelopment is to proceed.

The Federal Government has allocated $2 million to the upgrade which is scheduled to begin in July and take 12 months to complete.

The federal grant can only be spent on the No.2 sportsground project and the money must be used before June 2011. The remainder of the funds will come from the coffers of Newcastle council.

"We made the decision [to contribute $20,000] to really cement rugby's credentials and rugby's footprint on the project," Payne said.

"You only have to look at the wonderful facilities at places like Dubbo, Orange and Bathurst.

"We play Far North Coast here in the opening round of the Country Championships in March and the only available grounds are in Tomaree, Maitland or Singleton. The rest of the grounds have cricket pitches in the middle of them.

"Having our own base is crucial to the progress of the game."

Newcastle, the senior and under-20 NSW Country champions, have long been searching for a home.

"If you go back 20 years, Wal Fitzgerald had plans to develop a home for rugby at Wanderers Park, which is now the base of the Broadmeadow Magic soccer club," Payne said.