THE Royal Randwick Racecourse in Sydney is to receive a $170 million upgrade, the NSW government says.

Minister for Planning, Tony Kelly, today said the projects put forward by the Australian Jockey Club would transform Royal Randwick into a state-of-the-art world class racecourse.

The existing Queen Elizabeth II stand will be altered, while the Paddock stand will be demolished and rebuilt.

The Randwick pavilion will be demolished to make way for a parade ring with amphitheatre-style seating and a three-storey building next to it.

"Once complete, the racecourse will boast new and significantly improved grandstand facilities, an additional parade ring, a new conference facility and six new stable buildings," Mr Kelly said in a statement.

Up to 900 jobs are expected to be created through the construction and operation of the facility, he added.