Federal Treasurer Josh Frydenberg on Thursday announced the government would contribute $8.5 million towards the Danny Frawley Centre for Health and Wellbeing at St Kilda's AFL home base.

The Victorian government has also committed $7.3 million in its November 24 budget, with the project to be built at his beloved Moorabbin Reserve.

"Before his passing, Danny and the club had been working towards this project to give the local community somewhere their physical and mental health could be front and centre," Mr Frydenberg said in a statement.

"The Morrison government's investment, along with support from the Victorian government and philanthropic donations, is turning Danny's vision into reality."

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Construction will begin on the centre in early 2021.

It will include classroom spaces, consultation suites and breakout areas in the Moorabbin Reserve's grandstand and aquatic facility.

Frawley's widow Anita welcomed the announcement.

"We're thrilled to see everything Danny stood for being brought to life. To have a facility named in his honour that will help so many people means the world to us," Frawley's widow Anita said.

Frawley played 240 games for St Kilda, 177 of them as captain.

He died in September 2019.

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