Council has also asked Hunter New England Health to foreshadow the need for actual construction funds to be allocated in the 2016/2017 NSW budget.

The move, introduced by acting mayor David West while mayor Paul Hogan is on leave, comes after Manning Hospital received $1.35m in the 2015/2016 NSW budget, after a promise that $20m would be delivered during the term of the current government.

The mayoral minute tabled at the July council meeting states:

"The NSW Government has promised $20m funds for the hospital in the term of the current government.

"I urge Hunter New England Health to progress the planning as quickly as possible and to foreshadow the need for actual construction funds to be allocated in the 2016/17 NSW budget.

"The Manning Valley community and the hospital board have done everything possible to ensure this essential work proceeds including ensuring that a Clinical Service Plan was developed.

"The plan for the total upgrade is estimated to cost some $150m and initial planning has indicated the works could progress over three stages.

"There is an urgent need for stage one and a high need for the rest of the upgrade.

"Manning Hospital is a critical service provider to the 90,000 residents of Taree, Forster, Gloucester and surrounds."

Member for Myall Lakes, Stephen Bromhead has welcomed council's move, saying "I am pleased that Greater Taree City Council is supportive of the Stage 1 Redevelopment of Manning Hospital which is an important development for the Myall Lakes electorate and as stated will be delivered in the term of the current government."

Hunter New England Health's executive director, greater metropolitan health services, Karen Kelly said the $1.35 million allocated in the State budget had been allocated to HNEHealth to begin planning to deliver this upgrade.

"Stage one will deliver significant enhancements of cancer care and renal services," she said.

"Due to the detailed planning required for a redevelopment of this size, we expect planning to continue into 2016."