Grassroots rugby league is about to receive the biggest financial injection in the sport's history – a $4 million funding boost courtesy of a landmark agreement between the NRL and the state government.

Local clubs will be able to secure grants of up to $75,000 via the new ''NSW Footy Facilities Fund'' after the NRL and the NSW government invested $1 million in the initiative. To qualify, rugby league clubs will have to match the grant through their own financial or in-kind contribution, including some council support if the facilities are on council land.

The funds can be spent on items such as new seating, goal posts, canteens, lights, fields, fencing, drainage, dressing rooms or storage facilities. Sydney-based junior and senior clubs, as well as those from country areas, are encouraged to apply.

''Through working in partnership, we can drive investment of more than $4 million and deliver better results for rugby league clubs across the state,'' said NRL chief executive Dave Smith.

''Our mini football [ages five to nine] player numbers grew by more than 5 per cent last year across Australia and this program will ensure better facilities are in place to support our NSW players.

''This grant program will also help deliver social and economic outcomes for many communities across the state – from Wagga Wagga to Wollondilly, Ballina to Broken Hill – by creating jobs and building community facilities.

''The support from the NSW government for grassroots rugby league clubs has been fantastic and we look forward to seeing the outcomes of this new program come to life over the next few years.''

The development comes as the NRL appointed Jaymes Boland-Rudder to head the code's government relations strategy. Formerly the right-hand man to Barry O’Farrell as the NSW premier’s chief of staff, he will be tasked with courting government assistance in upgrading rugby league infrastructure following a period in which the AFL has had more success in doing so.

Clubs can apply for the NSW Footy Facilities Fund via dsr.nsw.gov.au/grants.

''This is great news for grassroots rugby league and the future of the game in NSW,'' Mr O’Farrell said.

''This is an investment that makes sense because it’s absolutely vital that people of all ages keep active, and it will be a great incentive by ensuring their facilities are up to scratch.

''We want young kids out running around playing rugby league on the footy field, instead of in front of the computer screen.

''I congratulate and thank the NRL for teaming up with the NSW government to create the NSW Footy Facilities Fund, which will put a spring in the step of people who love rugby league.''

NSW Minister for Sport Gabrielle Upton said participation rates would increase as a result.

''[It's] all about ensuring grassroots rugby league is well resourced, making it even more attractive for both juniors and adult players,'' Ms Upton said.

''Providing players with good facilities can be the difference between getting them playing the game or losing them to the iPad or Xbox.

''Local rugby league clubs run on the blood, sweat and tears of tireless volunteers who work so hard to raise funds to make their club the very best.''