Victorian Regional Development Minister Jaclyn Symes announced the cash this week for the fire-affected community who were originally going to fundraise the money.

Towong Shire mayor David Wortmann said the funding announced will "reach the heartland of the Upper Murray".

"Local sporting clubs and associations had planned to fundraise and sell some cattle to cover the additional funding," he said.

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"Following the devastation of the bushfires, this has become a load that our community cannot carry, this will go a long way in easing that burden."

The centre will feature two adjoining buildings, including one that will house a social room and a meeting space with a bar, while the other will contain new club rooms for both Corryong and Federal Football Netball clubs and a fitness centre to be operated by Corryong Health.

The construction is due to be finished in time for this year's Man from Snowy River Bush Festival in April.