Palmerston North's new Arena is touted to be the country's regional sports and events capital.

The city council's intention is to 'develop a quality, fit-for-purpose regional sporting and entertainment hub'.

At the Palmerston North City Council's launch, CPRW architect and director Wade Jennings said the detailed design would be finished this month and the tender for the build will also go out to tender.

Building of the master plan will begin after the April Military Tattoo.

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The new build will include a new Arena grandstand, corporate suites, an all-weather artificial turf, a new plaza and commercial entranceway and purpose-built speedway pits.

Bruce Robertson of Robertson Holden International Speedway said the design was a fantastic concept.

"The new concreted pits will be more serviceable for the cars which currently sit on grass."

The pits are to be relocated in 2019-2010 to provide space for the new entrance plaza and concourse on Cuba St that links the city and Arena.

A green space on Cuba St will be maintained and an 8m-wide landscaped pedestrian concourse has a designed flare zone beneath for fire safety vehicles.

The pedestrian concourse will allow easy flow and when the speedway is operating, pedestrians can look down into the pits.

PNCC manager property Bryce Hosking said a business case for the commercial building is in the early design stage.

"We are looking at a feasibility study. It needs to be able to stand on its own.

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"Tenants will have to maximise the space and value to the Arena."

Sport Manawatū is still part of the steering group.