A $55 MILLION redevelopment of the MCG's Great Southern Stand will begin shortly after this year's Grand Final.

The money will be provided by the Victorian State Government ($30 million) and the Melbourne Cricket Club ($25 million).

The project is expected to be completed before the start of the 2013 AFL season, with minimal impact on the stadium's seating capacity.

The renovations will include upgrades to kitchens, improved food and beverage outlets (including food courts), new toilet facilities and upgrades to infrastructure services, audio-visual systems and signage.

The AFL Members Reserve will be improved, with upgrades to several existing areas such as the Bunton, Wills and Legends rooms, as well as creation of a 500-seat function room on level two, which replaces nine corporate suites.

AFL CEO Andrew Demetriou said the redevelopment would further improve the ground's reputation as an elite stadium.

"The MCG is one of the premier sporting stadiums in the world and the home of Australian football and this year more than 2.8 million football supporters have been to AFL games at the ground," Demetriou said.

"We greatly appreciate the support of the Victorian Government and the MCC and in partnership we will continue to work to deliver the best possible facilities for sports fans."

The redevelopment was first announced last year by then Victorian Labor premier John Brumby. But his successor as premier, Liberal leader Ted Baillieu followed through with the plans.

"It's now been 20 years since the Great Southern Stand was built and the time is right to get to work so the MCG continues to deliver more world-class sporting experiences," Mr Baillieu said.

The MCG had undergone a $465 million redevelopment of the northern stand in time for the 2006 Commonwealth Games.

The last development of the southern side of the ground spanned over 1991 to 1992 in time for the cricket World Cup.