Based on a show by comedian Damian Callinan, The Merger tells the story of a struggling Aussie rules team that recruits refugees to revive the club.

Director Mark Grentell said the music and some technical colour work were almost finished and hoped to announce “some exciting news” in the coming weeks.

“We’re getting there in the last stages of post-production… we’ve shown it to test audiences and we got some really pleasing results,” Mr Grentell said. “You’re always worried the first time you show a film before the final elements go on, but they were strong showings. I think this has a stronger emotional core (than first film Backyard Ashes), more meat to the bone.”

It comes as the entertainment industry and the federal government puts pressure on streaming giant Netflix to abide by local content rules, which require Australian television stations to produce and screen Australian content. Mr Grentell said it would be a good thing for the industry if Netflix backed more Australian productions, as the local film industry had proved it could tell stories with a global appeal.

While Mr Grentell wouldn’t commit to making a third “Waggawood” film, he joked that if he did it would have to be about soccer.

“I’ve done cricket and footy, I guess a soccer film would wrap up the Wagga trilogy,” he said. “I could go three from three like George Miller did with Broken Hill and Mad Max.”