Reasonable federal funding for the redevelopment of the Melbourne Cricket Ground for the Commonwealth Games was totally justified, Prime Minister John Howard said today.

According to a leaked Cabinet document, the federal government's powerful Expenditure Review Committee has agreed to provide $90 million over two years to redevelop the MCG, a ground Mr Howard described as Australia's greatest sporting arena.

While not specifically commenting on the alleged Cabinet document, Mr Howard said it was unrealistic to expect Melbourne to host the Commonwealth Games in 2006 without some federal help.

"I think a reasonable Commonwealth subvention towards the Commonwealth Games is totally justified," Mr Howard told a news conference.

"I certainly think that we should make a contribution, just as we made a contribution to the Olympic Games."

Mr Howard said he did not have a fixed idea about how much the federal government should contribute, but it would be much less than the amount given for the Sydney Olympics.

"It's just not reasonable to think that we can host the Commonwealth Games in Melbourne ... without putting quite a bit of money into it."

Mr Howard said he wanted to say very passionately that the MCG was by far the nation's greatest sporting arena.

"And I hope that nothing ever happens to it that diminishes or reduces that status," he said.

The cabinet document does not detail plans for the MCG but refers to the decision of the ERC, which examines budget submissions made by ministers, to provide $90 million over two years for the redevelopment.

© 2001 AAP