Almost $2 million will be spent on community consultation and designs for a one-kilometre stretch of road between Morisset and the M1.
The preferred design of the long-awaited $76 million Mandalong Road upgrade, which Lake Macquarie council has described as crucial to the growth of the lake's southern suburbs, has been settled on by the state government.
The plans include adding traffic lights at the Wyee Road and Freemans Drive intersection, upgrading the existing roundabout at the Gimberts Road and Gateway Boulevard intersection, and extending the dual lanes on Mandalong Road on the eastbound approach and departure to the roundabout.
Around $76 million in joint state and federal funding has been earmarked for the project.
Transport for NSW said that funding would be delivered piecemeal, and the "timing for construction of the upgrade has not been confirmed and would likely be delivered in priority stages consistent with available funding" as the project progressed.
The department's regional director Anna Zycki described the road as a "critical link" from the M1 to Morisset.
"Transport for NSW will continue to develop the scope of works at Gimberts Road in consultation with Lake Macquarie City Council, which will take into consideration adjacent developments," Ms Zycki said.
"Active and public transport improvements would also be included as part of the upgrade, with a shared path along Mandalong Road for cyclists and pedestrians to improve multi-modal connections and help support a shift to more sustainable modes of transport.
"The upgrade will support retail, industry, commercial and housing growth along the corridor, with potentially upwards of 5000 new dwellings in the surrounding area."
The plans now go to public scrutiny, and the department has called for residents to have their say on the designs. Feedback received during the display will be considered to further refine and prepare the upgrade's concept design and environmental assessment.
Lake Macquarie development, planning and regulation boss David Antcliff said the council had long called for delivery of the upgrade and said he was eager for work to get started.
"Morisset is a critical growth area in Lake Macquarie that will support significant housing and job growth in coming years," he said.
On a visit to Newcastle on Saturday, Transport Minister Jo Haylen deferred questions about the Mandalong Road upgrade but said the state was "committed to a network that works, and we know that road is critical to that."
"We appreciate there are many bottlenecks across our road and transport network, and we're going to continue to also work with our federal colleagues to receive that investment," Ms Haylen said.
"I know that's one of the roads that people regularly raise up here.
"Our government is going to make sure that we're getting the funding that we need to unlock those bottlenecks and make it work not only for families and communities moving across the Hunter and Newcastle region but also when it comes to the movement of goods.
"This is a critical hub for NSW's freight and supply chain, and we're absolutely cognisant of that."
