In a major development for the cash-strapped team and Capital Football, Sport Minister Yvette Berry confirmed an additional $200,000 in funding would be made as a one-off payment for next season.

It takes the government's total financial contribution to $450,000 including its annual $250,000 as an advanced payment to ease pressure on Capital Football.

The Canberra Times can reveal Berry sent a letter to Capital Football boss Samantha Farrow on Wednesday afternoon to confirm the new deal in a bid to save United after fears it would fold.

It's understood Canberra Liberals leader Elizabeth Lee was also poised to reveal a funding package for Capital Football on Thursday, and Farrow had agreed to attend a press conference to announce the details of a $300,000 package.

But Farrow withdrew from the Liberals announcement after Labor confirmed its new deal.

The increased government contribution, combined with new sponsorship and funding strategies pursued by Capital Football and the more than $72,000 raised by fan group 'Save Canberra United', is understood to be enough to keep the foundation A-League club alive at least another season.

"Capital Football and Canberra United welcome the announcement from the ACT government of an additional one-off contribution of $200,000, in association with their annual subsidy of $250,000, to help towards securing the future of the club for season 17," Farrow said in a statement.

"We thank the football community for supporting Canberra United through the 'Save Canberra United' fundraising campaign, and that, coupled with this generous contribution from the government, certainly helps the club in our immediate requirements, but we still have some shortfall to cover costs for the new season.

"Having said that, the directors of the Capital Football board have agreed to field a team in season 17, and we look forward to working with government, fans, and commercial, to give the club every opportunity going forward."

Capital Football - the only state or territory organisation in charge of an A-League Men or Women's team - had flagged its concerns about Canberra United's future in recent months, saying it needed more revenue to make the team viable beyond this past season.

Berry, government officials and Farrow met with investors from the Canberra A-League Men bid team and other A-League representatives on Wednesday to further discuss the future of Canberra United.

In Berry's letter, she said the meeting helped give her greater confidence in providing additional funding.

"This offer is in recognition of the ACT government's commitment to one of Canberra's most beloved teams," Berry said.

"We acknowledge the role that Canberra United plays in inspiring women and girls in our community. You can't be what you can't see."

In return for the increased investment, the government is seeking from United "additional community engagement activities" off the back of the successful Women's World Cup last year in Australia, and "additional sponsorship and signage opportunities and access to profile players to promote Canberra."

Berry informed Capital Football that she continues to work closely with the Australian Professional Leagues over the men's A-League bid, "to seek confirmation of the licence provision and associated investment model, as well as advocating for the women's team".

Berry also insisted that Capital Football provide a response to her correspondence surrounding the sporting body's investment in a Home of Football in Throsby, so "the ACT government can commence construction work on this project without further delay".

United were facing the disappointing prospect of not competing next season as Capital Football faced significant financial challenges.

Farrow revealed it needed an additional $500,000 to ensure United could play on without negatively impacting their community work with soccer's 15,000 registered players in Canberra.

Late last month the government initially offered to fast track its $250,000 in annual funding to help ease financial pressure, but Farrow warned Capital Football would only be able to continue operating United if it could source further "improved investment".

In the final weeks of the season panic spread among fans about the dire situation their beloved club faced, with United players and staff also left in limbo, unable to sign new contracts, prompting a fan group to begin a dedicated fundraising initiative.

Capital Football had anticipated a Canberra A-League Men bid with the Australian Professional Leagues - complete with a $20 million backer - to also take over running the United women's team after securing a men's licence.

However, the announcement on a new men's team ownership group expected in June has faced lengthy delays, and still 10 months on there remains no certainty when the situation will progress.

Capital Football revealed last week that $1.25 million per year was spent on United in the past two seasons due to increases in salary and travel expenses for the team.

Rumours have been swirling the Canberra A-League bid group was considering putting its men's ambitions on hold in the short-term to focus on operating the women's team next season.

Initial plans were for the men's Canberra team to be ready to compete in the 2024-25 campaign, but given the start of the season is just six months away, that is looking less likely.

Some are still holding out hope that a decision in the coming days or weeks would still give the new A-League franchise enough time to get up and running for the men's competition though.