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CITY of Sydney Basketball Association can see light at the end of the tunnel for ageing Alexandria Stadium now Lord Mayor Clover Moore has announced a $10 million upgrade for the facility.

Moore headed off what looked set to be a raucous City of Sydney Council meeting by apologising for her earlier backflip and allocating $10 million for what could be up to six courts at the overwhelmed two-court venue.

"We were blown away," said Andrew Lazaris, long-serving president of the CSBA.

Council in August, 2011 had announced a multi-million dollar development for brand new indoor and outdoor community sports facilities at Perry Park, Alexandria, including a six-court basketball facility.

But Moore reneged on that decision, amid allegations the non-profit basketball association was to have been responsible for part of the funding.

CSBA was strongly represented at the next council meeting, with Lazaris joined by Basketball Australia chief executive officer Kristina Keneally, representatives of the Aboriginal community and a representative for the Gay and Lesbian community.

"But we were all very surprised when Clover Moore apologised, saying unfortunately the budget had changed with light rail coming into the city," Lazaris said.

"She then allocated $10 million to Alexandria Stadium."

The current facilities at Alexandria, provided by Lazaris' CSBA are at capacity, the venue unable to host large metro and interstate basketball tournaments and finals series, let alone accommodate demand for a weatherproof, indoor venue for other sports.

"This was excellent news for us," Lazaris said.

"We are going to go away now and come back with the designs for council to show how we can add four courts and refurbish the existing two."

Lazaris has been reviewing stadium facilities at Shoalhaven and Victoria's new State Basketball Centre at Knox.

"I met with the CEO and director of public projects over at Northern Suburbs Basketball Association to show them other facilities," he said.

"We're working around the clock on it and hoping to come up with a definitive design within the next few weeks."

City of Sydney Comets have run basketball competitions in the inner city for more than 70 years and at Perry Park since 1967.