New England MP and acting Prime Minister Barnaby Joyce said the upgrade was “planning for the future” and making sure vital infrastructure is in place for the region’s growth.

“This is about seeing how the city of Tamworth is going to be, not in five years, not in 10 years, but in 50 and hundred years’ time,” he said.

The cost of the upgrade is being shared equally between the federal government, state government and local government

In June, Tamworth MP Kevin Anderson announced $1.56m for the upgrade, with Tamworth Regional Council agreeing to pick up the rest of the bill.

Mayor Col Murray said improved road would get more trucks off Tamworth’s main thoroughfares and provide a direct route to the Glen Artney industry estate.

“This is a great outcome where we see three levels of government come together to provide a funding solution to a very important transport link,” Cr Murray said.