ENDURING the worst possible start to a season, Melbourne has finally received the sort of news it has waited on for decades — it will finally have a home back in the city that bears its name.

Premier John Brumby yesterday announced that a new football training oval would be built on the site of the Olympic Park athletics track and that athletics would move to a new home and track built at Bob Jane Stadium in South Melbourne.

Melbourne chairman Paul Gardner declared the Government's decision among the most important days in Melbourne's history.

"You cannot underplay the significance this has for the football club," Gardner said.

"We are thrilled to bits, we will now have the best of both worlds — we have a summer base in Casey, the fastest growth corridor in Australia, and we will have a home base back in the city at a fantastic new venue and facilities.

"We have worked closely with the Sports Minister James Merlino and we have to thank them for this, this is terrific news. We still wait to see the lease arrangements but it is fantastic news for the footy club."

It is believed Collingwood will take over the Victorian Institute of Sport's home in the other half of the Lexus Centre when the VIS moves to South Melbourne.

Melbourne Football Club is expected to have its home facilities, along with Melbourne Victory and Melbourne Storm, in the offices being built into the stands of the new rectangular stadium currently under construction next to the athletics track.

Collingwood will remain where it is and almost double its space in the Lexus Centre and Melbourne will get a new home on the other side of the football oval that is to be built.

Gardner said that while the club was enduring a miserable season on the field, it had secured two extremely significant deals off the field to underpin the club's future.

"People have been saying we have lost the heart because we aren't in Melbourne and we have the worst take-up among AusKick kids and now we have secured a summer training base in the fastest growing corridor in Australia and we are moving back into the heart of Melbourne with our permanent base in the one place.

"This is a great day," Gardner said.

"Since 1981, people have been saying, 'What are we going to do, where are we going to be based?' Well, now we have that base and it is the best of both worlds."

Gardner said the announcement was only significant if Melbourne supporters continued to attend games and help the club during its awful season on the field.

Facing low-drawing Fremantle at the weekend, winless Melbourne could have a big loss at the gate from the expected low attendance.

"But if our supporters, not our members — because they do turn up — but if our supporters don't come, then that creates problems of its own.

"It means it's one thing to have a home base, but if you are losing money at the gate, you have to start selling home games," he said.