The tender for dredging was awarded to Austco Environmental Pty Ltd yesterday, with works expected to begin on Monday, September 20.

The project will deepen 1750 metres of the rowing course by five metres.

The sediment excavated from the bed of the lake will be deposited within two of the existing reed beds to create permanent shallow wetlands.

The wetlands will provide a habitat for many of the plant and bird species that have recently returned to the lake.

Austco Environmental managing director Cole Harvey said his company was pleased to be awarded the tender.

The dredging company specialises in water treatment solutions and has completed similar projects in Hamilton and the Murray Goulburn Lagoon.

''As a group, we're ecstatic to be working with the Ballarat City Council on this project,'' he said.

``We just want to get people back on the lake and enjoying it.''

The project is expected to take eight months and will result in the lake once again being of national rowing competition standard.

Ballarat Rowing Association president Eric Waller said the prospect of competitive rowing on the lake was becoming a reality.

''We've got a possibility of a lot of quality rowers coming down here and training and competing.''

Dredging occurred when the lake was dry, but council deemed it was too dangerous to continue.

The city's acting director development and infrastructure Ian Rossiter said the $1.2 million project would move more than 100,000 cubic metres of sediment from the bottom of the lake.

Meanwhile, the FISA announcement as to whether Lake Wendouree will host the 2014 FISA World Rowing Masters Championships is expected in coming months.