Deputy Prime Minister and Member for Riverina Michael McCormack announced the funding after visiting the current PCYC site in Gurwood Street on Friday.

The $10m from the federal government is the final tranche of funding needed to build the $23m complex. The state government has previously committed $10m and Wagga City Council $3m.

Mr McCormack's announcement comes just weeks after the Wagga PCYC was unsuccessful in an application to the Building Better Regions Fund.

The $10m has come from a different program, the Community Developments Grant.

This complex will include four sport courts, conference facilities, a 60-person after-school care centre and office space.

"The dream now becomes a reality. They can build confidently on this site on the corner of Edward and Fitzhardinge streets the facility they've always dreamed of," Mr McCormack said.

"We're on the site in Gurwood Street which has served the areas faithfully since 1963. This site is past its use-by date. This site needs, badly, an upgrade, It needs to be replaced. 

"I know what a difference this is going to make for the thousands of young people, the thousands of families, who use PCYC each and every year, each and every day and I know this is going to be a fantastic boost for this wonderful organisation that has served our community for so many years."

Mr McCormack said building could start "virtually from mid-year, once we get all the paperwork signed away".

PCYC Riverina manager Brett Somerville described himself as "ecstatic" after the announcement.

"It's an amazing announcement. It's fantastic for us as a club, as an organisation, as a not-for-profit charity," Mr Somerville said.

"With this money - and obviously other other funding we have received from the state government and Wagga City Council - we can build a facility that Wagga deserves, build a facility that the youth of Wagga can use any time of the day for whatever purpose they feel the need to.

"There's been a lot of work. This is a 15-year project.

"There is been a lot of people doing a lot of good work to get it where it was. We're confident we know what we can deliver.

"We know this is going to be the right thing for Wagga and the Riverina because it it gives us a facility that is state significant from a sports point of view."

Wagga Mayor Greg Conkey said it would be a great sporting and conference facility.

He said the Gurwood Street site had served the community well, but it was "pretty tired".