Premier John Brumby revealed details of the first stage of the redevelopment on day two of the Australian Open yesterday.

The plans are to include a renovation of Margaret Court Arena, which will see the installation of a retractable roof and a further 1500 seats, as well as a new eastern plaza next to the Hisense Arena, as well as a further 21 new courts.

The renovations will make it the only Grand Slam tournament to boast three covered courts, including Rod Laver Arena, Hisense Arena and Margaret Court Arena.

The Victorian Government claims the revamp will ensure that Melbourne holds on to the event beyond 2016, preventing competition from cities such as Shanghai or Dubai from poaching the event.

Sports Minister James Merlino said that the renovations will lock the event in Melbourne until at least 2036, with work taking about five years to complete.

The master plan oft the Rod Laver event will take about 10 to 15 years.

Premier Brumby said that the Australian Open was the biggest annual sporting event in the southern hemisphere and the revamped Melbourne Park would make Melbourne the only grand slam host with three undercover courts.

He went on to say that The Open was the biggest sporting event in the world for the month of January and is the largest annual event anywhere in the southern hemisphere.