The project includes the construction of two shared concrete netball and tennis courts, the renewal of two tennis courts, with an artificial surface and the upgrade of the existing netball court.

It also factors in the addition of LED 400 lux lighting, fencing, concrete paths and player shelters.

The Wahgunyah multipurpose hard courts and lighting project, supported by a grant of $1.09 million, is one of 27 to benefit from a share in more than $68 million from the community sports infrastructure stimulus program.

Wahgunyah Recreation Reserve secretary Wes Canny said planning for the upgrades had been in the works for around a decade.

"The process was slow, but at the end of the day it was the right way to go," Mr Canny said.

"It was a bit of an opportunity being a tough time with COVID-19 where the project fit the guidelines of the funding the Victorian government had offered.

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"We put in for a grant a few years ago and were told to keep putting them in and this came up and it ticked the box because a lot of the groundwork had been done.

"For a town like Wahgunyah, to generate the funds required was outside the realms of what we could do.

"We needed the shire on board and the state or federal government to help us out and the timing was right.

"We were very grateful for anything we got and it exceeded our expectations."

Mr Canny believes the new facilities will provide a great outlet for the community to bounce back from the COVID-19 pandemic.

A start date on construction is yet to be confirmed, but will follow on from similar court works recently completed within the shire.

"They'll get onto it straight away once the paperwork is signed and they've got some local contractors in mind who did a great job at Chiltern and Yackandandah," Mr Canny said.

"I think the whole understanding of this is to use local contractors to help stimulate their businesses."

Member for Northern Victoria Jaclyn Symes said the investment is about helping grassroots sports communities get back in the game when the time is right.

Indigo Shire mayor Jenny O'Connor said the project will have a huge impact on attracting greater participation in community sport.