The project builds on the $40 million stage one - completed in mid-2020 - which provided improved renal and cancer services and provided a new medical imaging unit.

Attending the event, Minister for Regional Health, Bronnie Taylor said as more people were choosing to escape to the country from larger cities, this project was about delivering health infrastructure to the regions.

"This masterplan meets what the community expects and our health staff deserve, and today marks an important milestone in the delivery of a world-class hospital for the region," Mrs Taylor said.

Member for Myall Lakes, Stephen Bromhead said work on-site was expected to start once a project planning was completed and statutory planning approvals have been achieved.

"It is vital that Myall Lakes residents have access to the best healthcare facilities and stage two of the redevelopment will continue to ensure that," Mr Bromhead said.

Mr Bromhead could not confirm if the development would be contracted to a local builder.

"There will be more beds for patients in the hospital. But, I can't put a number on it."

Health Minister, Brad Hazzard said the redevelopment would ensure the health needs of the local community were met now and into the future.

"Stage two of the redevelopment will deliver upgraded in-patient beds and accommodation and modern facilities to support best practice models of care," Mr Hazzard said.

"These enhanced health facilities and services will strengthen the region's healthcare and provide positive social benefits in Taree and surrounding communities."

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