Sport Australia and the AIS will spend more than $2 million on an athletics track facelift to make the Canberra venue the fastest in Australia.
Workers have started ripping up the existing surface as part of a major upgrade to ensure the track meets international standards.
The new blue Mondo track will be the same surface used at the Tokyo Olympic and Paralympic Games next year and construction is expected to be finished at the start of 2020.
It will give Canberra-based athletes, including sprint queen Melissa Breen and hurdler Lauren Boden, the perfect opportunity to prepare for their bid to become three-time Olympians.
The AIS track was refurbished just six years ago, but the foundations underneath are 12 years old and need to be replaced to maintain its reputation as one of Australia's fastest.
Sport Australia and institute officials have allocated $2.3 million to the project, despite the uncertainty about the future of the Bruce campus and its facilities.
Sport Australia is yet to detail its long-term facility plan, which will likely include cutting in half the 65-hectare site at the AIS.
The ACT government is keeping a close watch on Sport Australia's decisions as it weighs up its own plans to build a new stadium in Civic.
The future of Canberra Stadium will be included in Sport Australia's long-term vision, with the federal government agency likely to sell its major assets and downsize the campus.
The ACT government will publish an infrastructure report later this month, which include plans for a stadium, convention centre and a theatre.
The plans, however, are contingent on the future of the AIS and the potential sale of Canberra Stadium, the AIS track and the AIS Arena.