Melbourne Arena will be renamed John Cain Arena in honour of the former premier, the Victorian Government has announced.
John Cain, who became the state's 41st premier in 1982, was a driving force behind the creation of the National Tennis Centre, now Melbourne Park.
Speaking on ABC Melbourne this morning, Premier Daniel Andrews said building a state-of-the-art facility and moving the Australian Open there were among Mr Cain's greatest achievements.
"I don't think we would have the Australian Open anywhere near the major event it is now [without Mr Cain]," Mr Andrews said.
"Perhaps it wouldn't even be here.
"What is now Melbourne Arena will become John Cain Arena and I think that's a fitting tribute to his passion for that precinct and a life that enriched all of us."
As the Australian Open wrapped up last night, the Sports and Major Events Minister Martin Pakula said the honour was a testament to Mr Cain's vision.
The Victorian Government has spent almost $1 billion on Melbourne Park since 2010 and the Australian Open will remain in Victoria until at least 2036.
"We're seeing the benefits of that today with something like 800,000-plus people going through the gates over two weeks and the Australian Open being bigger and better than ever, and locked in here in Melbourne for many years to come," he said.
The event used to be played in Melbourne at Kooyong and at other venues across Australia.
"John Cain's vision was to have a permanent home for the Australian Open right on the doorstep of the city and it's now grown into one of the great sporting precincts of the world," Mr Pakula said.
A state memorial service celebrating Mr Cain's life of public service will be held at St Paul's Cathedral today.
Mr Cain died on December 22 after suffering a severe stroke on December 10.
Born at the height of the Great Depression in 1931, Mr Cain rose through the ranks of the Victorian Labor Party and was hailed as a "breakthrough" leader who ended 27 years of conservative rule.
He resigned in 1990.
