However, the Bulldogs and Ballarat City Council are remaining extremely tight-lipped over any new alignment.

Although the details of the agreement have not been disclosed, AFL scheduling manager Simon Lethlean confirmed the two parties had entered into an agreement.

The revelation comes after the City of Ballarat ended North Melbourne's long-standing sponsorship this year, upsetting Kangaroos hierarchy that felt their hard work over six years had been undone.

"The Bulldogs have entered a relationship with the local council in Ballarat, which is based essentially on their western corridor strategy," Lethlean told AFL.com.au.

"North Melbourne is focused on Tasmania and elsewhere, so they (the Bulldogs) asked whether we would support a game there.

"We were certainly keen to support the Dogs and the Ballarat City Council, who are starting off a new relationship.

"We're keen to help them with that strategy as it extends down there and again support councils who want to support our clubs."

When asked a series of question by The Courier, council did not address its relationship with the Bulldogs.

Nor did it explain why the sponsorship had been terminated with North Melbourne.

Western Bulldogs also played coy, not divulging any further information.

"Council has been a strong advocate for AFL matches in Ballarat and has successfully tendered to secure an AFL NAB Challenge fixture for Eureka Stadium in 2015," city of Ballarat chief executive officer Anthony Schinck said in a written statement.

"We're thrilled that the Western Bulldogs will take on Melbourne here in Ballarat next March. These games keep Ballarat on the agenda as a future home for AFL home and away matches."

When asked about the situation while in Ballarat yesterday, Premier Denis Napthine said the state government would hold discussions about the AFL and the Bulldogs about what is in store for the future.

"I think we need to let that settle down a bit, we need to talk to the AFL and to the Bulldogs about what is the long term commitment from the AFL and from the Bulldogs to the Ballarat community," Napthine said.

"We need a firm partnership arrangement to warrant significant investment from the state government."

The Kangaroos had worked closely with the council for six years, with Kangaroos CEO Carl Dilena saying the club was upset to unwillingly have its ties cut with the city.

"The first we heard of it was when council (City of Ballarat) notified us that they wouldn't be extending our sponsorship agreement," Dilena told The Courier on Wednesday.

"To us it was surprising, we were presuming we would be continuing the relationship we had built up over the years."

Dilena also revealed on Wednesday that North Melbourne would no longer hold community camps in Ballarat, under direction from the AFL.

The Kangaroos had played pre-season matches in Ballarat for the last six years, but have not been granted a NAB Challenge game in the city next year, with Western Bulldogs to meet Melbourne in March.