The 2022 NRL Grand Final will be played in Sydney, but it has been stressed that it is only a one-year partnership.

Australian Rugby League Commission Chairman Peter V'Landys and NRL CEO Andrew Abdo confirmed the news on Thursday afternoon following a long drawn out negotiation process with the New South Wales and Queensland state governments.

"After extensive negotiations, we have made a decision that we believe is in the best interests of our fans, and that is to hold the grand final in Sydney this year," Peter V'Landys said.

"It has been a hard decision to make. The Queensland premier has been fantastic to deal with, however, the new sporting minister has been extremely professional and courteous and it is only for that reason that we are able to come to the conclusion we have."

"The New South Wales government have given an investment, but this is only for one year and I have to stress that. It's not for the long term, and negotiations will recommence for future grand finals.

"It has put it on the table for the future. We were hoping we would have an exclusive arrangement with the New South Wales government, however, that is no longer the case, so it opens the door for a Super Bowl type concept, or whoever can give us the best deal for the game, and you have got to remember we have four teams in Queensland."

The Queensland bid to host the game came on the back of the Sunshine State successfully doing so in 2021 when the competition was relocated to the south east corner of the state following the coronavirus outbreak and lockdown in New South Wales, Victoria and Canberra.

While the NRL have a long-term contract with the NSW government to hold the grand final in the state, that also required money to be poured into stadiums, something that is yet to materialise.

Originally, money was supposed to be pushed into the Olympic Stadium precinct which hosts the grand final, while it was then reverted to suburban stadiums, however, recent flooding around the state has caused further delays in funding being delivered, with only the Penrith Panthers green lit for a new or improved stadium at this stage.

Further funding is designated for Brookvale, Leichhardt and Cronulla's home ground in the Shire.

However, it's understood that 11th hour negotiations between the New South Wales government and the NRL were enough to get the decision to host the grand final in Sydney across the line.

It's understood New South Wales offered less money than Queensland for the right to host the decider.