The $12.5m plan will see the current velodrome upgraded by installing a roof, improved amenities for cycling and speed skating, and provision for other sporting and non-sporting events, such as concerts.
"This is not just about cycling but a raft of other sporting coes and community facilities," Mr Grant said.
"And it is not just about Whanganui, but the whole region.
"A lot of time and effort by a lot of people has gone into this."
Included in the proposal is the re-building of the Snell Pavillion, and levelling the central area to provide a 200-metre international indoor speed skating track.
Mr Bridges told the Chronicle: "National knows this is an important project for Whanganui, and we recognise the value of the development of the velodrome to the region and national cycling community and that the community has been working incredibly hard to bring it to fruition.
"We will work with the district and regional councils, community organisations and local businesses to deliver this project.
"Thanks to the work of the Regional Velodrome Development Trust, the project is well under way. Resource consent has been granted, and the project is now proceeding through final detailed design stages.
"Developing the velodrome will deliver significant economic and social value to Whanganui and the wider Manawatu-Whanganui region."
Retiring Whanganui MP Chester Borrows, who has been closely involved in the project, said he was "very pleased the National Government has caught the vision for this regional project of national sporting significance".
"Full marks to Leigh Grant and Bob Smith who have driven the project with their team, and thanks to Horizons region mayors who have supported the project as a region and not in competition with Whanganui.
"Having been involved from 10 years ago when we were in unsuccessful competition with Cambridge for the Avanti Stadium, it has been something we have wanted to see completed. This is a magic day."
