A plan to give a major sports venue a facelift for the Olympic Games is under a cloud amid cost blow-outs. 

The redevelopment of Brisbane's Gabba stadium, scheduled to host three crucial Olympic Games events in 2032, faces questions amid potential cost blow-outs.

The plan was to build 8,000 extra seats to host athletics events plus the opening and closing ceremonies - but it could be abandoned as a 'project validation' is undertaken.

The $1billion expected cost to renovate the city's iconic landmark could reach $2.5billion, government insiders revealed to The Courier Mail.

'All for an extra 8,000 seats?' an insider said. 'It's nuts.' 

The plan would see the sportsground's seating plan going from a 42,000 seater to 50,000. 

The stadium would need to be widened by 10metres either side of the tight spot it already sits on, 4km south of Brisbane's CBD. 

It would encroach onto Stanley and Vulture streets, major thoroughfares in the Woolloongabba area. 

The venue may also need to be raised - making it level with the Cross River Rail station concourse currently being built.

The costs would include expensive land resumptions and cause the Brisbane Lions AFL club's headquarters to be moved to Springfield - 27km west of the prime site.

'It was a thought bubble and now they're trying to mop it up,' another insider said about the plans. 

Its relocation would harm their business model, the source added. 

The Queensland government is reportedly looking into other venues to hold the events, including a 50,000-seat stadium in Albion Park racetrack or Doomben racecourse.

Another option is to use the Meriton Stadium on the Gold Coast, which hosted the Commonwealth Games athletics events and both ceremonies in 2018.

But it faces opposition from Queensland Premier Annastacia Palaszczuk and Brisbane Lord Mayor Adrian Schrinner, who want the events in the River City.

Another option under consideration is to use the Brisbane River as the location of the opening and closing ceremonies, with the athletics being held at a different place. 

Brisbane was awarded the Olympics and Paralympics in July 2021.

There are fears planning for the Games is behind schedule and that further delays are possible because of inevitable hold-ups.

These include forecasts of La Nina-related weather events, combative unions and the spiralling costs of all construction. 

An initial estimate said hosting the Games would cost taxpayers over $5billion but it is understood that bill will blow out when infrastructure needs to be built urgently because of delays.

Last October, the Federal Minister for Sport, Richard Colbeck, admitted the Games would cost more than the initial $5billion estimate.

'It'll probably be a bit more than five [billion], given the infrastructure for transport and the infrastructure for the Games,' he told 4BC.

Ms Palaszczuk was contacted for comment by the Daily Mail Australia.