“The NSW government remains committed to creating two world-class rectangular stadiums to ensure NSW returns to the number one position for sport and entertainment,” Mr Ayres said.

“We welcome the support today from the western Sydney business community to bring major events to this city to ensure that we’re continuing to grow the visitor economy and drive job growth."

Three western Sydney business groups have urged the government to establish a NSW Global Events Taskforce to ensure Sydney has a chance when it comes to bidding for least five major global sporting events, including Commonwealth Games and football World Cups.

Despite the commitment from the Premier and minister, Deputy Premier John Barilaro has insisted the policy was not a done deal and a “final decision” still had to be made.

Last week Mr Barilaro said if there was “red hot anger” in the community, the government would have to take that on board.

Several senior government sources have said there was widespread opposition to the policy within the Coalition.

One source said: “The Premier cannot be seen to back down from this or she will appear weak and indecisive so that’s why she is holding her ground for now.

“Just because we have a lot of money splashing around does not mean we should be pushing ahead with this. We have to back down or we just hand a free pass to the opposition.”

Meanwhile, the upper house is expected to vote in favour of two new super committees that would investigate major projects worth over $10 million.

The first target of the new public works committee would be the government’s stadium policy, as well as WestConnex and the light rail project.

Shooters, Fishers and Farmers MP Robert Brown said he had the support of the crossbench MPs and the opposition to establish the two committees.

“These committees will have a continual oversight and provide transparency when it comes to government decisions,” Mr Brown said.

“The idea is to shine a bit of light on the government’s business cases and means we would not have to wait for budget estimates to come around each year.”

Mr Brown would chair the public works committee and Christian Democrats MP Fred Nile had agreed to chair the public accountability committee, Mr Brown said.