Qld govt won't fund $2b arena and precinct

Queensland's deputy premier has welcomed a $2 billion proposal for a 17,000-seat arena and entertainment precinct in Brisbane's CBD, but has made it clear the state government won't help fund it.

In fact, Jackie Trad says the government would be hoping the Brisbane Live precinct, proposed for the Roma Street rail yards, would help pay for the government's priority infrastructure project - Cross River Rail.

Brisbane-based company AEG Ogden will approach the state government this week to pitch the idea.

It includes a 17,000-seat arena, cinemas and restaurants and would be built above a station for the yet-to-be-approved Cross River Rail project, which will see a second river rail crossing built in Brisbane.

Ms Trad said the urban renewal project, which would "give so much back to the community", was "something to get excited about".

"It would be great to have a live venue in the heart of the city, as opposed to in the outer suburbs," Ms Trad said on Sunday.

The city's ageing entertainment centre, which hosts international music acts that come to Brisbane, is located about 20km from the CBD.

However, Ms Trad said it would be AEG Ogden's responsibility to fund the new arena and surrounding precinct and compensate the government for building the project on public land.

"A market-led proposal is based on the premise that the proponent - the person who puts in the project - funds it," she said.

"If government land is required in the development of the project, we will be seeking a return, particularly in order to fund Cross River Rail."

Ms Trad said there was "lots of negotiation and consideration" to take place before the project could go ahead.

Meanwhile, the business case for the $5.2 billion Cross River Rail is expected to be released next month.

The project is expected to be a key issue for Queensland during the federal election campaign, with Opposition Leader Bill Shorten already pledging to help fund it.