Mayor Mark Jamieson has demanded the federal government find an increased $31 million to fund the expansion of Sunshine Coast Stadium.

It comes after the May budget release on Tuesday night where no federal funding was allocated towards the shortfall of the Bokarina stadium expansion.

Local philanthropists Roy Thompson and Rod Forrester had pledged to fund a combined $11m towards the upgrades, however it was dependant on federal backing to the tune of $20m.

The state government ($20m) and Sunshine Coast Council ($17m) had already committed funds for the project which would have expanded the stadium's capacity to more than 16,000.

With the federal government not making money available, Mr Thompson and Mr Forrester have since pulled out of their commitment.

Mr Jamieson labelled the federal government's decision as "inexplicable".

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"The loss of this opportunity is 100 per cent, entirely due to the inaction of the federal government," Mr Jamieson said.

"To get the project back on track, our council and our community will be expecting the federal government to cover the lost $11 million in addition to the $20m we have sought from them for this project.

"Filling this gap should not fall onto the shoulders of our ratepayers when neither they, nor our council, created this problem."

Mr Jamieson praised Mr Thompson and Mr Forrester's efforts to get the project off the ground.

"The offers were unparalleled in comparison to any other sports infrastructure project in Australia," he said.

"The upgrade of our stadium is needed now to meet the needs of our community - all of the evidence points to this.

"The federal government was given plenty of notice of our funding request and of the intention of the two philanthropists to withdraw if the money wasn't provided in the budget."

Mr Wallace on Monday urged the philanthropists to "keep their money on the table" and help him secure an election commitment.

"I need them to continue to work with me."

Mr Wallace said he would continue to fight for the stadium upgrades.

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