The NSW and federal governments have committed $5 million each to a major redevelopment of Maitland Gaol.
The money will help Maitland City Council realise long-held ambitions for the heritage-listed site, including on-site accommodation and upgraded services.
Deputy Premier Paul Toole said the first stage of the redevelopment would include an upgraded entry, a reconfigured "destination" café with interior access to the gaol and boutique accommodation in two historic on-site residences.
"On top of injecting tourism dollars into the local economy once completed, the redevelopment will support more than 30 jobs during construction and provide opportunities for local businesses, delivering an important economic boost to the region," Mr Toole said.
Newly elected Maitland mayor Philip Penfold said the funding would allow the council to start implementing a development plan and master plan it prepared for the gaol in 2020.
Those plans include attracting private investment in a proposed hotel adjoining the site, opening up the gaol's guard towers to visitors for the first time and making the gaol financially viable within five years.
The site was the longest continuously operating correctional institution in Australia, opening in 1848 and closing its gates 150 years later.
It opened as a tourism attraction in 2000 and hosts tours, private functions, exhibitions, conferences and events, most notably the popular annual Bitter & Twisted beer festival.
Mr Toole and Deputy Prime Minister Barnaby Joyce will be in the region on Friday with cheques at the ready.
They will also announce a joint $10 million grant to help pay for the $39 million expansion of Newcastle Art Gallery.
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