It’s a long-held dream close to becoming a reality, and Papua New Guinea’s residents are still coming to terms with the news: they may soon have a NRL team to call their own.

Robert Laa, a 26-year-old construction worker from Central, believes the country has waited long enough. “Every year, we Papua New Guineans live for NRL, we’ve been supporting teams in Australia and it’s time we have our own team to support,” the Brisbane Broncos fan said.

The prime minister, Anthony Albanese, told ABC Radio on Wednesday negotiations with the Australian Rugby League Commission (ARLC) are at an advanced stage. “We’re just working through, still, the final details,” he said.

A formal announcement is expected as early as next month. The Prime Minister’s XIII men’s and women’s sides play PNG’s national teams in Port Moresby on 13 October.

PNG is famously the only country in the world where rugby league is the national sport, and locals estimate 80% of the country follows the NRL.

Mary Mogaia, a 30-year-old teacher from Western, said the sport is a way of life. “Papua New Guineans are rugby fanatics, many homes, friendships and relationships are built and/or broken over NRL,” she said. “People bleed, fight and even die for NRL, so it’s time we have our own team in the NRL.”

The PNG Hunters already compete in Queensland’s rugby league competition thanks to funding from the Australian government, and won the premiership in 2017.

Amid regional competition from China, the Albanese government has escalated its effort in sports diplomacy. Negotiations with the ARLC are close to conclusion on a 10-year, $600m deal that would underpin the franchise.

The PNG government has pledged millions on improving training and accommodation infrastructure in Port Moresby, and the local resources sector is also expected to back the team.

Yet there is concern over the impetus of such large spending. The World Bank states almost 40% of the country live in poverty, and 28% of women aged 15-49 have experienced sexual violence, according to a 2019 report from PNG’s National Statistical Office.

Leader of the opposition, Douglas Tomuriesa, thanked the Australian government for its commitment, but said the professional franchise must not be the only beneficiary. “We would like to see the governments of Australia and PNG expand the focus of this project from not only the NRL.”

While the arrangement is yet to be finalised, approximately $30m per year in Australian government funding is expected go to the operations of the NRL club, while almost as much per year will be spent on social and education programs.

Andrew Hill, chief executive of the PNG bid, said he was awaiting the conclusion of the formal expansion process run by the ARLC – which is expected to issue at least one other licence in addition to PNG – but work is already underway on grassroots programs “for long-term success and sustainability”.

The country has just run its first schoolboys and schoolgirls championship, and the NRL bid has just completed its initial academy program, which involved 720 boys and girl between age 15 and 19, and is designed to also encourage school attendance.

“To be in our pathways program you must be a school student,” Hill said. “While that might be a little unfair to an 18- or 19-year-old who may not be in school, it’s to reinforce the importance that education is vital for the future of PNG.”

The remainder of the $600m will be paid to existing NRL clubs, who must agree to expansion before it goes ahead.

PNG is already Australia’s largest development partner, and is set to receive $637m in foreign aid through the Department of Foreign Affairs and Trade during 2024-25.

Winston Mou, a 17-year-old student and Rabbitohs fan, said he is happy with the news but is not sure the country is ready.

“PNG rugby is going to need time to develop and to reach that [NRL] standard, I’m worried we may become the wooden spoon receivers if we join now,” he said. “I also understand it will cost a lot of money to run a NRL franchise, PNG cannot afford it.”

The Australian government and the bid hope the side can be financially self-sufficient within 10 years.