Charles Sturt University will be allocated an additional five medical Commonwealth Supported Places at the medical school in Orange.
The medical school is part of the Australian Government's Murray-Darling Medical Schools Network initiative is designed to address a shortage of doctors in rural Australia.
Federal Member for Calare Andrew Gee welcomed the announcement of the five new medical places, which brings the total number of CSPs at Charles Sturt University to 37.
"This is great news for Charles Sturt University's medical school and the broader Calare community," Mr Gee said.
"Doctors, nurses and allied health professionals are critical to the health and wellbeing of country Australia, particularly now, as we work towards a post-COVID world."
Mr Gee said the new medical CSPs will create opportunities for local students to become local doctors - and will increase the number of country medical professionals within the community.
"We know students who successfully complete their studies in a country area are more likely to stay, with seven out of 10 graduates from regional universities going on to work and live in country Australia," Mr Gee said.
"The Australian Government is committed to the health and prosperity of country Australia, and we will continue to work alongside our country universities and communities to improve rural training opportunities and ensure the future distribution of the medical workforce."