The new-look showgrounds will feature a 10,000 sq metre major exhibition centre, a main arena and helipad, a covered arena and an open air stage.

The stage could be used to attract events like the Big Day Out, which Melbourne faces losing next year due to a lack of a venue.

Big Day Out organisers say they will no longer be able to use the Melbourne Showgrounds after its redevelopment, and there is a lack of other suitable sites.

The Ballarat Showgrounds Master Plan released late last year identified the relocation of the showgrounds from Creswick Rd to the southern precinct of Victoria Park as its preferred option.

That has been supported by a new policy guide prepared for Victoria Park which has given `in principle' support to the showgrounds relocation and the construction of an indoor riding facility.

However, the document still requires the submission of detailed development proposals before the council approves either plan.

The showgrounds application is expected to come before Ballarat City Council at the second council meeting in February.

Ballarat Agricultural and Pastoral Society director Gerard Ballinger said the new look showgrounds would boost Ballarat's efforts in attracting big events to the city.

"We've already had some initial talks with Ballarat Tourism and we hope to try and attract some huge events to Ballarat," Mr Ballinger said.

"We have been in extensive consultation with the council about relocating the showgrounds over a long period of time and this policy guide is another step in fulfilling our plans.

"The best case scenario for establishing the showgrounds at Victoria Park would be in two years time and we're currently in the process of completing a business plan for the project.

"Victoria Park would provide us with a big, centrally located area and it also gives us the possibility of starting building from scratch.

"We feel it would best suit our needs and the needs of the wider community."

The policy guide will be presented to Ballarat City councillors tomorrow.