Victoria's three city racing clubs will come under increased pressure to merge.

A pending merger would see both NSW clubs debt-free, new grandstands and facilities for Randwick and Rosehill and annual savings of $5 million to be ploughed into prizemoney.

NSW Racing Minister Kevin Greene declared his state "the home of racing in Australia".

The merger leaves Victoria as the only state with more than one city racing club.

The Victoria Racing Club, Melbourne Racing Club and Moonee Valley Racing Club have resisted overtures to merge, although they share some administrative structures.

The view in racing circles is mergers, driven by Racing Minister Rob Hulls, will be back on the agenda if the Labor Government is returned at the next election.

Racing Victoria chief operating officer Bernard Saundry said RVL was talking with the three clubs, each of which has a masterplan to grow its business.

The Maxsted Report, commissioned by the three clubs and released in August 2009, recommended two "super clubs" and a merger of the VRC and MVRC .

A spokesman for acting Racing Minister Bob Cameron said club mergers were a decision for the clubs involved and Victoria would remain the premier racing state despite an AJC-STC merger.

Thoroughbred Racehorse Owners' Association chairman Andrew Lafontaine said that while mergers needed to be addressed, the Victorian Government must follow NSW and lift its financial commitment, especially given the deal to share in poker machine funds ends in 2012.

The NSW Government offer of $174m, partly funded by revenue from the simulated racing game Trackside, is conditional on club members voting for a merger. The club boards are unanimous the package is too good to refuse.