The AFL has submitted a $300 million proposal to the state government to redevelop the stadium and rejuvenate the much-maligned Docklands area.

The plan, detailed in the Herald Sun, includes opening up the arena to Harbour Esplanade, community yoga classes and a running track in the stadium.

Sports Minister John Eren said the government had spoken to the AFL about the "bold and exciting" plan.

"If we want to maintain Victoria's reputation for having the best of everything, it's worth considering how to make the most of our stadiums," Mr Eren said.

"I can confirm we have spoken to the AFL about these bold and exciting plans. We will continue to work with them to make the sporting capital of Australia even better."

In March, Mr McGuire also submitted a proposal which would see a new stadium built near the MCG.

He said the $1 billion plan would create a "unique flow" from Parkville to a new revamped Docklands.

The Magpies chief said he was not "in a battle with AFL" over the future of Etihad Stadium and the development of the surrounding precinct.

"What I am determined is not going to happen is that this becomes the battle between Eddie and the AFL," he said.

"I am an AFL man, but I am also state of Victoria man, I am the president of the Melbourne Stars …so what I am looking at is …not what can we fix of what we've got …but what can turbo-charge this for the next 50 years."

Mr McGuire said both ideas had merit, and he wanted what was best for the city.

However, he said there was a need to revamp Etihad Stadium,  a relatively new stadium that has aged quickly.

Construction on Etihad Stadium - also known variously as Telstra Dome, Colonial Stadium and Docklands Stadium - finished in 2000 at a cost of $460 million.

"It is a really good ground ...but ...it was the last one built before Wi-Fi; it was the first built with moveable streets - the technology doesn't work," Mr McGuire said.

"The roof at some stage will need repairing.

"You are deciding whether you renovate or buy a brand-spanker."

Mr McGuire's plan, which includes demolishing Etihad Stadium, drew flack from former Victorian premier Jeff Kennett who told a Melbourne radio in March that the proposal was "dead and buried".

He said a key problem with revamping the Olympic Park precinct would  be the need for Hisense Arena to be shifted above the railway lines which may affect the Australian Open tournament.

The future of Etihad Stadium and any possible redevelopment lies in the hands of the AFL, who plan to buy back the facility in ten years.

In March, the AFL released a statement after Mr McGuire's plans for Etihad Stadium were made public.

The AFL said there was a need to invest to ensure that "we don't go backwards in an increasingly competitive market".

"The AFL is keen to continue to discuss with the Victorian Government the best stadium and infrastructure outcome for the city of Melbourne and the Victorian public."