A key venue in Scotland's 2014 Commonwealth Games bid is to be redeveloped at a cost of more than £14m.

The Communities and Sport Minister, Stewart Maxwell, yesterday announced a total of £6.5m of executive funds is to be invested in Scottish sport to increase participation, improve elite performance and deliver world-class facilities.

Of this, £4.2m will go to Scotstoun stadium in Glasgow as a joint athletics and rugby facility, under the national and regional sports facilities strategy. Glasgow City Council will provide the remainder of the £14.2m total.

Facilities will be upgraded to provide a municipal stadium, primarily for athletics. Rugby has ruled itself out, preferring Firhill, but there is provision for it to come back on board at Scotstoun.

Mr Maxwell said a further £2m is to be invested in nine other Scottish sports governing bodies for 2007/08: mountaineering, squash, table tennis, fencing, curling, canoeing, rowing, karate, and netball, plus Children 1st.

Scotstoun will be the venue for squash and table tennis if Glasgow's 2014 Commonwealth Games bid is successful. International lobbying for that continued yesterday when First Minister Alex Salmond hosted a reception at the Palace of Art in Glasgow for 15 visiting delegates from the Caribbean and the Americas.

The executive is committed to supporting the bid, and announced the additional funding yesterday with Julia Bracewell, chairwoman of sportscotland.

Despite the new government's manifesto pledge to disolve sportscotland, there was the suggestion of an olive branch, with an acknowledgement of the importance of its role.

Mr Maxwell said: "We are looking at sportscotland and the overall structure of sport," he said. "Before the end of the year that will be sorted, one way or the other, but I can guarantee the very important work they undertake at the moment will continue.

"That work is crucial to the future success of sport in Scotland. What we're reviewing is the structure, and how best to achieve that, and best value in what they do."

Ms Bracewell pointed out that issues such as the lottery must be wholly independent of government. "Sport can't afford to lose the integrated approach," she said The SRU's parlous financial situation and inability of Glasgow City Council and the rugby franchise to agree, caused them to withdraw from an anchor tenancy agreement over Scotstoun redevelopment, originally planned to start more than 18 months ago. There are parallels with the slow progress in a similar joint-usage development at Sighthill, in Edinburgh.

Mr Maxwell said the executive had "no concerns" at investing in Scotstoun. "It needs upgrading. We need a world-class facility in Glasgow. The SRU has taken a decision over whether this facility suits them, and that's up to them. If there is a change of heart in future, I'd welcome them coming on board."

There was a mild reproof for the delays to capital projects in Edinburgh. "There are a number of projects that we'd hoped would be further ahead, and I've asked sportscotland to look at these projects and find out the reasons for the delay."

Scottishathletics chief executive Geoff Wightman, said: "You can link what's happening here in Glasgow with what's potentially going to happen with athletics and rugby at Sighthill. In theory the two sports should be able to co-exist reasonably well: pro rugby by day, club athletics in the evening, summer and winter sports."

In the time he has been involved with discussion, there have been three regimes at Glasgow Rugby. "This delayed it to the point that athletics nearly lost its rotation on the international events programme," he said. "There comes a point when you have to go it alone. There are the same issues with the Edinburgh rugby franchise, and where it will base itself.

"I believe we could work with rugby, but both local authorities are aware that athletics is committed to this, and they have a commitment to athletics. They realise 2012 (London Olympics) and 2014 (potential Glasgow Commonwealth Games) aren't getting any further away. Therefore there needs to be a commitment to athletics, given their position within these major games."