Works will begin on the Birallee Park Indoor Cricket Training Facility after the council awarded the tender to Southern Cross Developers.
It follows a second tender process earlier this year.
The first tender process wasÂ undertaken in November 2018 but the submissions were considered unsatisfactory.
Discussions with stakeholders confirmed no change in the scope of the project and the tender packages were readvertised.
The accepted tender is above the original budget and the council has committed to making up the shortfall.
In awarding the tender, councillors noted the importance of the project to not only players but also the economic benefits to the city.
Cr John Watson noted the project was significant in that involved a partnership with several stakeholders.
"This is a great thing for our community and a great thing for cricket and this will be a hub, a place of purpose for cricket in the North East," he said.
Cr Danny Lowe noted the regional impact of the project.
"This facility will stop our elite cricketers going to other bigger cities, will stop that loss of talent, but not only that it will attract cricketers from other areas to train and develop their sport here," he said.
'This is a chance not to be missed and is a project that is for the future development of cricket in our city."
The regional cricket hub will include an indoor training centre with four pitches, unisex player change rooms and office accommodation for staff and will enhance club competition and development of programs for players, coaches and umpires, while accommodating regional administrative needs of cricket.
The Victorian Government has contributed $500,000 with Cricket Australia and Cricket Victoria, Cricket NSW has contributed $50,000 and Albury City Council $150,000.
The council had earmarked $600,000 for the project and will allocate an additional $200,000 from savings in the present capital program and continue to work with the project partners.