A proposed stadium makeover for ANZ Stadium may enhance Sydney's chances of hosting a World Cup final.

News Limited has reported that a master plan development has been drafted to improve the stadium which will include a retractable and transparent roof, a rectangular shape and extra 7,000 seats, costing about $150milion.

A source close to the plans said it would be a great opportunity for Sydney to potentially host the World Cup final if the tournament happens to come to Australia.

"We won't get it with a venue that hasn't changed much since the Olympics because FIFA will want a stadium that's a monument for the world game and even bigger than the Olympics," the source told News Limited.

"This makeover will deliver that. It will knock Melbourne out."