Sydney's two biggest stadiums will be torn down and rebuilt in a major Aus$2 billion (US$1.5 billion) redevelopment, the state government said Friday, in a controversial move that critics called a waste of money.

The 83,500-capacity ANZ Stadium -- completed in 1999 for Sydney's hosting of the 2000 Olympic Games -- will be replaced by a 75,000-seat rectangular ground, New South Wales state Premier Gladys Berejiklian said.

Allianz Stadium, which can seat up to 45,500 and was opened in 1988, will be demolished with a similarly sized arena constructed in its place.

"Fans will be closer to the action than ever before, with steep seating creating a colosseum-inspired wall of sound and colour, enhanced with the world's most advanced technology,"