Deputy premier John Barilaro and Roads Minister Melinda Pavey came to Orange to announce $3.4 million funding for the road.

There is still a shortfall in the full $16.9 million needed for the work to start, however Orange City Council is looking for further funding.

The Southern Feeder Road will link the Mitchell Highway east of Orange with Jack Brabham Park.

There will be a 720 metre dual carriageway to connect Huntley Road to Blowes Road.

A further 420 metre road will be constructed through the old saleyard site.

A concrete bridge will be constructed over the railway line near Jack Brabham Park which will include a shared pedestrian and cycle path.

Mr Barilaro said the funding was part of the government’s Fixing Country Roads initiative.

“The NSW government is working with local councils to identify important upgrades to improve safety and freight productivity on roads that are managed and owned by local councils,” he said.

“Funding will see the delivery of extensive infrastructure and upgrades along the South Orange economic growth corridor.

“These upgrades will benefit mining, agriculture, forestry and manufacturing by creating easy, direct access for large vehicles.”

Ms Pavey said better roads will lead to better communities.

“We are getting on with the job of providing improvements and upgrades across our freight transport networks,” she said.

Orange mayor John Davis said council was hopeful there would be more funding in the state budget.

“We don’t know what’s in the budget and that’s in two weeks,” he said.

“We are very hopeful. We will negotiate with the state and federal governments.

“By the end of the year there will be tenders out.”

Cr Davis said a crucial piece of the planning was the design of the new railway bridge.

“We own all the land. That has been put into place over many years.”

Cr Davis said construction would start from Bathurst Road and along Dairy Creek Road.

He said continuing the road to Woodward and Pinnacle roads would cost another $10 million.