Premier Mark McGowan says he is hopeful negotiations with the AFL on its move to the new Perth Stadium for the 2018 season will be complete by the end of the week.
The AFL renewed its threat on Saturday to remain at Domain Stadium into next year after the state government rejected its demand to have other sporting codes subsidise any shortfall in income it may suffer by moving to the new facility.
Mr McGowan said the government would not use further taxpayer funds to entice the AFL to its new home.
"The government is in a strong bargaining position," he told reporters on Wednesday.
"(Domain) is tired and old, and I think fans will revolt if they're forced to go to Subiaco. The clubs know that - they want to play at the new stadium."
He said the past six months of negotiations with the AFL had been tough, long and involved, but he thought the government was close to clinching an agreement.
The premier said he had also been in discussions with his "new friend", Collingwood Football Club president Eddie McGuire, about boosting supporter presence and potentially increasing the number of games played by the Melbourne side in Perth.
"Anything that provides jobs, opportunities, tourism, life and vitality - even if it's Collingwood supporters - we are in favour of," he said.
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