Packer wins big on WA stadium decision

And Premier Colin Barnett has confirmed it's not going to cost the media mogul a cent.

"With the greatest respect to James Packer, I think he's a very fine young guy and a very astute businessman," Mr Barnett said.

"But I also have a very long memory of the scandals in WA politics and you don't mix business with public investment."

It had been Perth's worst kept secret, but Mr Barnett finally revealed the government would spend $700 million on a new multi-purpose stadium at Burswood in the mould of Melbourne's Etihad Stadium.

But the decision flies in the face of a 2007 government commissioned report examining possible stadium sites identifying Burswood as the least cost effective, mainly due to its poor public transport.

As the site stands, access is limited by a single road while people have to rely on one rail station with a line that terminates in the CBD and does not feed other lines.

Mr Barnett said the government would eventually build a new special events railway station that would service all four lines in the Perth rail network.

"You will be able to catch a train from anywhere in Perth to the stadium," he said.

"But there will need to be a change in culture for football followers."

The premier said the stadium, due to be completed in 2018, is the largest government investment in sporting and entertainment infrastructure in the state's history and would be centrepiece of a broader precinct.

Opposition sports spokesman Roger Cook doubted the government could solve the "absolute nightmare" of getting in and out of Burswood.

"At the U2 concert in Subiaco they cleared 60,000 people in under 45 minutes, while to get the 10,000 people out of the Kylie (Minogue) concert at Burswood the other night it took two hours," he told AAP.

"If the government can say they can do it and give value for money for the taxpayer then good luck to them.

"Quite frankly I don't think they can make that claim."

Mr Cook said Mr Packer should be funding some of the cost as it provided a boon for his business.

Sports Minister Terry Waldron said the stadium would primarily cater for AFL home games for the West Coast Eagles and the Fremantle Dockers but it would have flexible seating to host major rugby union, league, cricket and soccer fixtures.

However, Western Force, Perth Glory and a potential WA NRL franchise would have to make do with the existing NIB rectangular stadium.

Former undertreasurer John Langoulant, who prepared the 2007 report, said if the new stadium didn't cater for other codes the government would struggle to get a good return on its investment.

"It will be most unfortunate if this is just an Aussie rules stadium in which you play rectangular sport," Mr Langoulant said.

"A genuine multipurpose facility, to get much closer to 40 odd games a year, would provide for a good return on investment."

Despite the federal government threatening to ignore WA's request for commonwealth funds after the state lifted royalties, Mr Barnett said he was confident it would come to the table.

"You'll probably hear about it in the lead up to the federal election," he said.

Mr Barnett said he expected the AFL to also stump up some funds.