The Penrith Panthers have been promised a new stadium, but the final location is yet to be confirmed.

The New South Wales state government have confirmed they are in talks with the Penrith Paceway to acquire the site and build a new stadium there, however, the deal is yet to be completed.

The stadium, which is believed to be in the planned ballpark of around $400 million to complete, makes up roughly half of the money that the NSW government promised to spend on NRL stadium.

Other funding for upgrades was set to be directed towards Cronulla, Manly and Leichhardt, however, money to those stadiums has been delayed as a result of recent severe flooding on the state budget.

The blow up over delayed funding almost cost New South Wales the grand final in 2022, although the issue was smoothed over.

The government are now proceeding with the finding for the Penrith stadium, however, it's unclear whether it will be built on the paceway site or at the current stadium's location.

Should it need to be build at the current stadium, then Penrith would likely be forced to play their games in Parramatta for the best part of two years while construction is happening.

Penrith confirmed recently they would remain at the foot of the mountains for 2023, and NSW parliament member Stuart Ayers, who recently resigned as sports minister, said during Penrith's NRL premiership celebrations that the paceway is still the preferred site.

"We're just progressing with our commercial negotiation with the Paceway, the adjoining land," Ayres said.

"It's definitely the best spot to build the stadium. We know that. We'll just go through that process and get a good result.

"It'll mean that the players and the fans know that we're playing at the existing Penrith stadium next year.

"But once we get that deal done, we're going to get on with it and build a stadium that outer Western Sydney deserves.

"But definitely next year they'll be playing here while we complete our commercial negotiation."

New sports minister Alister Heskens recently said no decision has been confirmed.