The Town of Rothesay plans to build a new arena and convert the existing one into a fieldhouse.
Mayor Bill Bishop announced the $13-million project on Wednesday.
He says it will be funded by all three levels of government and will not affect the municipality's tax rate.
Rothesay has budgeted to pay one-third of the cost.
The federal government has also agreed to cover one-third, confirmed MP Rodney Weston.
But the provincial government has not yet signed on.
Still, Bishop says the project is "not a pipe dream."
"We're in present negotiations with the province of New Brunswick, through our MLA, minister Ted Flemming, who is very supportive of the project, and we expect to hear good news from him in the very near future," he said.
The new arena, which will be attached to the existing facility, will include one ice surface, an indoor walking track and meeting rooms, said Bishop, unveiling design plans.
Construction will start this spring and is expected to completed by the fall of 2015, said Bishop.
Once it's open, the existing arena, built in 1972, will be turned into a fieldhouse, he said.