The funding comes after confirmation NBL side the Melbourne Tigers would be taking up permanent residency at Arden Street.
The money will be used to upgrade the club’s multi-purpose indoor stadium.
"The Brumby State Government, and in particular Ministers James Merlino and Bronwyn Pike, have been tremendous supporters of the North Melbourne Football Club and our magnificent new facility,” North CEO Eugene Arocca told kangaroos.com.au.
“This announcement is further evidence of their commitment to us and to other elite sporting clubs looking to have a major impact in their respective local communities."
New basketball rings will be added around the edges of the existing court for training purposes while new scoreboards, air-conditioning, seating and a new locker area will all be installed.
North ruckman and former basketballer Todd Goldstein attended Wednesday’s announcement and took the opportunity to reacquaint himself with his former sport of choice.
“I was a bit rusty…it’s been a while since I’ve had a shoot around,” Goldstein said.
“It’s great having the Tigers down here. They are a great group and we wish them all the best on Friday night against Sydney in their season opener.”
“We are very pleased to announce our partnership with the North Melbourne Football Club and are very appreciative of the Brumby State Government, in particular Ministers James Merlino and Bronwyn Pike, for their support. We are excited that the Melbourne Tigers administration and training base has moved into the elite facilities in Arden Street.” Tigers’ CEO Seamus McPeake said.
“We see a great deal of potential growth for both clubs in regards to community engagement with the state of the art facility.”