Seeking to address Northern Tasmania's indoor sport facility shortage and increase the stadium's capacity to 24,112, an approved redevelopment could rival the university's $344 million Inveresk relocation among the city's biggest projects.

It is hoped the development would boost Tasmania's AFL ambitions and put Launceston in the frame for hosting upcoming soccer and rugby World Cups.

"We think it's a well-costed, reasonable and much-needed development for the city," Stretton said.

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"The level of spend we're proposing for this stadium is very commensurate with what's happening in areas like GMHBA Stadium in Geelong and stadiums in Perth."

Should council vote to endorse the draft plans on Thursday, the proposal will be forwarded to state government.