Minister for Sport Natalie Ward said the funding package will increase the number of exciting new leadership opportunities for women in sports-based roles both on and off the field.
"I am a passionate supporter of women being involved in all levels of sport, and this package will help open the door for those who aspire to leadership positions," Mrs Ward said.
"Funding will go towards initiatives that promote women in roles such as coaching, officiating, board directorship and developing inclusive sporting cultures."
The funding boost is in addition to $640,000 recently announced through the Her Sport Her Way Grant Program.
"The Her Sport Her Way strategy acknowledges the importance of female leaders and mentors in the sector as coaches, officials and administrators," Mrs Ward said.
"This investment will enable education programs and support organisations in embedding equitable leadership at all levels of sport, from grassroots through to boardrooms."
Sport NSW will deliver gender inclusive training to sporting organisations and support professional development programs for female leaders.
Sport NSW Chief Executive Officer Ross Bidencope said the funding would support the sector in increasing the number of women in leadership roles and on boards.
"This funding will allow us to expand on programs that promote women in leadership and equip aspiring females with the tools and confidence they need to take on these roles," Mr Bidencope said.
"There will also be a focus on supporting sporting organisations to shift thinking and cultivate positive change so female representation on boards increases."
Other initiatives to be delivered include the development of mentoring programs, female coaching and leadership programs, mental health networks and youth leadership programs for girls from culturally and linguistically diverse backgrounds.
Cycling NSW Chief Executive Officer Graham Seers said the grant would help create more female leaders in the sport.
"Through our partnership with AusCycling's She Rides program, this funding will empower more women to step into mentoring roles," Mr Seers said.
"These new female mentors will teach, guide and inspire beginners, helping them overcome barriers such as fear of traffic and lack of practice, and getting more women riding confidently."
Football NSW Chief Executive Stuart Hodge said his organisation was committed to developing the skills of the sport's female leaders.
"Football NSW, working in conjunction with Football Australia, has identified the wonderful opportunity provided by our co-hosting of the 2023 FIFA Women's World Cup, to shine a light on the need to develop, support and empower the many wonderful women involved across all facets of our game," Mr Hodge said.
"Working with our clubs and associations, it is our intention to provide capability building programs to further the leadership skills for some of our champions in women's football, be they coaches, referees, administrators or volunteers."
