Premier Colin Barnett, minister for state development in Western Australia, has announced that a new AU$700m (£463.4m) stadium is to be built on Perth's Burswood Peninsula.

The 60,000-seat venue - due to be completed in 2018 - will be the third largest in Australia and will also be the second largest Australian Football League home stadium. Forming the centrepiece of the "emerging eastside precinct" in Perth, the stadium will have the potential to expand to 70,000 seats in the style of Melbourne's Etihad Stadium.

Western Australia's 2011-12 state budget will allow for AU$13m (£8.6m) over a two-year period for planning the venue, with final costs to be determined once designs are finalised. Barnett said: "The new Perth Stadium will deliver a high quality, state-of-the-art facility all West Australians can be proud of.

"To help us achieve this, there will be an international design competition to attract the best ideas." Western Australia sport and recreation minister Terry Waldron added: "The new stadium will be a true multi-purpose facility able to hold not only sporting events such as football and major international rugby, cricket and soccer games, but major cultural events such as concerts as well."