2003–05

The stadium underwent redevelopment during the years 2003–05, funded mostly by local and state government grants.

Factors that brought on the redevelopment included:

• non-compliance of National Rugby League (NRL) stadium criteria, especially the dressing rooms;
• failure to attract major sporting events to the area, specifically the 2003 Rugby World Cup;
• inadequate and ageing spectator and corporate facilities;
• covered seating capacity well below best practice and NRL standards;
• minimal areas within the grandstand to increase members' patronage both during a sporting event and on non-match-days;
• poor facilities for media officials;
• unsatisfactory temporary spectator facilities to the north and south of the western stand;
• the perceived need for the incumbent State Labor government to contribute to the public infrastructure in a region of safe seats.^[7][8]

The first stage of the redevelopment was completed in early 2004. This consisted of;

• The construction of the lower level of the Eastern Stand (brought into operation for the 2004 NRL season and Anzac Test between Australia and New Zealand). This level holds 7,700 people.
• The relocation of corporate boxes and seating to the North and South stands.

The second stage of construction began in 2004 and was completed in 2005. This consisted of:

• The construction of the Eastern Stand's second level of seating and corporate boxes;
• a new video screen; and
• remedial work for the Western Grandstand, including updating the media facilities.

2008–11

During the 2007 NSW Election campaign, the Premier Morris Iemma promised $30 million towards an upgrade of the stadium, conditional on the Federal Government matching the funds.^[9]

On 1 April 2008 the federal government confirmed $10m towards the development of the Western Grandstand. This was in addition to the $30m commitment from the state government. This was a critical step for the stadium's development for the upgrade to be in by 2011.^[10] The A$40 million contributed to an expansion of the stadium's capacity to eventually hold over 40,000 as well as general improvements in the stadiums facilities.^[11][12]

From 2008 to 2010 the stadium was upgraded again^[13] to around 33 000 seats, with a hope for the stadium to be involved in the 2015 Asian Cup and 2018 World Cup were Australia be the host of those tournaments (Australia did host the Asian Cup, but not the World Cup). As part of the announcement, Morris Iemma stated that the capacity of 33,000 could be increased to the 40,000 necessary for World Cup Hosting, through temporary seating.^[14] The total cost of the upgrade was estimated as $60 million, with $50 million from the state government and $10 million from the Federal Government. Although construction was slated to take place during both the Newcastle Knights and Newcastle Jets seasons, developers stated that there would be minimal effect on attendances due to the staged approach.^[13]

McDonald Jones Stadium at night

The stadium development was planned to be carried out over four stages.

• Stage 1 (now completed) included dressing, warm up and medical rooms, with showers, toilets, ice baths and 855-seats of the spectator concourse in the stadium's south-west.^[15]
• Stage 2 (now completed) replicates Stage 1 on the northern side of the Western Grandstand and also included the main western stand's lower concourse.
• Stage 3 (now completed) demolished the old western Grandstand and is replacing it with one similar to the eastern stand.
• Stage 4 (undertaking preparation) will involve building the northern and southern ends of the ground, replacing the grass hills with seated areas.

Newcastle Knights Centre of Excellence

In June 2018, plans were announced for a Centre of Excellence for the Newcastle Knights located at the southern end of the ground at a cost of $20 million with $10 million provided by the NSW government with the other $10 million funded by the Knights' owners The Wests Group.^[16]