The funding for the upgrade has been delivered by the federal government and will also include the refurbishment of five existing classrooms and redevelopment of the school's existing creative and performing arts facilities.

The overhaul is expected to begin late next year with the Wagga Catholic Diocese also contributing $1 million to the project.

"Our school has been in need of a new stadium for many years," Xavier principal Gavin Dykes said.

"We are thrilled to be awarded this grant.

"This funding ensures the Xavier school community will have a first-class stadium facility that will be practical and functional for staff and students.

"The opportunity to refurbish classrooms along with our creative and performing arts facilities will see these teaching and learning spaces brought up to the same high standard of other facilities in the school providing an improved teaching and learning experience for staff and students."

The federal government's capital grants program provides funding for non-government primary and secondary schools to improve capital infrastructure where they otherwise may not have access to sufficient capital resources.

The school's $2.3 million arts centre was opened 16 years ago.

Farrer MP Sussan Ley said the school was a worthy funding recipient.

"This is not only a large investment from our government, it is also a major spend for the school, with an additional $1 million from Catholic Education, Diocese of Wagga helping deliver what will be a significant facelift of their sport and arts learning areas," she said.

"It has been a pleasure to watch Xavier's facilities grow and develop on the Fallon Street campus.

"This latest project is another important step in offering the best facilities possible for a flourishing school population."

Xavier High School presently has 840-plus students and Mr Dykes has been principal since 2013 after previously being at Shepparton.