The City of Hobart will spend around $1.2 million replacing the synthetic track at the Domain Athletics Centre, with work expected to start in November.
The council said it had picked a contractor and was finalising the contract before construction could begin.
The track will be out of action for part of the athletics season, disrupting athletes, clubs, schools and event organisers.
Hobart Lord Mayor Anna Reynolds said the project could not be put off.
“Replacing the track is a must-do project,” she said.
“The current surface has reached the end of its service life and this upgrade is critical to maintaining World Athletics certification and ensuring the Domain Athletics Centre remains a venue that athletes can be proud of.”
“However, we know this project will be disruptive for many members of the athletics community, particularly as it will take place during the athletics season and we appreciate that this will be frustrating for users.”
Reynolds said the council is working with Athletics Tasmania and Little Athletics Tasmania on interim training and competition arrangements.
“This $1.2 million investment will deliver a modern, high-quality track that supports participation, athlete development and the attraction of major events to Hobart for years to come,” she said.
Athletics Tasmania and Little Athletics Tasmania chief executive Glen Taylor said the venue was too important to leave as it is.
“The Domain Athletics Centre is the home of athletics in Tasmania and renewing the track is vital to ensuring athletes, clubs, schools and major events can continue to access a safe, high-quality facility that meets the highest standards,” he said.
“While we recognise the timing will create challenges during the season, Athletics Tasmania and Little Athletics Tasmania appreciate the City of Hobart’s commitment to working with the athletics community on interim arrangements and keeping users informed throughout the project.”
The venue hosted the Hobart Track Classic in February, drawing 18 Olympians back to the Domain after a decade away.
Athletics Australia CEO Simon Hollingsworth described it as “absolutely the most beautiful track in Australia” ahead of the meet.
Council said more detail on timeframes and interim arrangements will be released once the contract is signed.
