The Australian Government will donate more than $A16.5 million, or nearly $SBD100 million, for the Pacific Games.
It makes Australia the second-largest contributor to the event behind China which is building a stadium in the capital, Honiara.
Pacific Minister Pat Conroy has denied that Australia's contribution towards next year's Games has been spurred by Chinese investment in the event.
"Australia is supporting the Pacific Games because it is a priority for the Solomon Islands government and people," he said.
"Being development partner of choice means listening to priorities of Solomon Islands people and government, we are the largest development partner of Solomon Islands."
The funding will support accommodation for visiting athletes, sporting equipment and construction of a temporary venue for open water sports events.
The 2023 Pacific Games, officially known as the XVII Pacific Games, will be a continental multi-sport event for Oceania countries and territories that is scheduled to be held in Honiara, Solomon Islands between 19 November to 2 December 2023. This will be the first time the Solomon Islands would host the Pacific Games.