Brisbane’s Olympic dream is becoming a reality with an intergovernmental agreement securing a $1.2 billion federal fund for the new Brisbane stadium.

Deputy Premier Jarrod Bleijie announced the funding partnership and the plans for the Games on Thursday.

“To deliver this once-in-a-generation event, you need to work with partners,” he said.

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“What today’s deal means is certainty for games infrastructure going forward.”

Federal contributions for this project will total $3.4 billion and both governments will commit a combined $7.1 billion to deliver 17 new or upgraded sports venues, including the promised Victoria Park stadium.

“Despite being from different political persuasions, we have worked well together in the state and in the national interest,” the deputy premier said.

Federal Infrastructure Minister Catherine King said the deal will help the Olympics leave an “incredible legacy for Queensland”.

“The Australian government’s commitment of $3.4 billion towards the Games venues is the single largest contribution any Australian government has made towards sporting infrastructure in this country,” she said.

At the heart of Brisbane 2032 is Victoria Park’s proposed 63,000-seat stadium. It was confirmed on Thursday that the stadium will be used for the opening and closing ceremonies.

Work has already begun, including soil sampling and geotechnical studies, to ensure the site will be fit to build on.

The site, however, holds major cultural significance with First Nations people and the redevelopment plans have brought about cultural heritage controversy for the state government.

The LNP ensured on Thursday that they acknowledge their obligation to reach an agreement with First Nations groups, “but ultimately if an agreement can’t be reached, then the laws have to override”, Bleijie said.

This controversy is yet another for the state government, which has continually been challenged by First Nations people since coming into office.

Leeanne Enoch, Labor member for Algester in Queensland, commented in parliament last week that “this LNP government is hell-bent on winding back any progress made regarding reconciliation in this state”.

Enoch accused the LNP of attempting to “erase” First Nations people from the QLD public sector.

“This government is determined to undermine the impact of years of cross-cultural training and agreed protocols designed to ensure government agencies are able to effectively serve some of the most vulnerable people in our community,” she said.

Bleijie said that the LNP recognise Victoria Park is a significant issue, but was “confident that we will secure the support (of First Nations people)”.