Liberal Senator for NSW, Concetta Fierravanti-Wells, joined Lake Macquarie mayor Kay Fraser to mark the start of work on the critical road project on Friday.

"This 820m extension will link Glendale with Cardiff's industrial estate, significantly improving connectivity around the city's northern and western suburbs," Senator Fierravanti-Wells said.

"Its completion will immediately provide faster, smoother and safer journeys for road users, benefiting local business and laying a foundation for future growth.

"The Australian Government is pleased to join with Lake Macquarie City Council to contribute $2.27m to the $5.17m project, through the Building Better Regions Fund."

Cr Fraser said the road extension was critical for the city's growth.

"This is a regionally significant infrastructure project that will unlock business investment, commercial development and housing opportunities, supporting growth in this region," Cr Fraser said.

"It has taken a significant amount of work to get to this point and we acknowledge the Australian Government's patience and the support of the NSW Government to reach a solution.

"We are working with the Hunter and Central Coast Development Corporation and interested developers to realise the full potential of this site, now that the ownership has been transferred to the NSW Government."

Council's CEO Morven Cameron said the works would significantly benefit Lake Macquarie and the Hunter.

"The road is a catalyst for development of more than 800 new homes and 20 additional hectares of employment-generating land.

"This area is identified in the Greater Newcastle Metropolitan Plan as a key to the region's future growth and prosperity."

Daracon will complete the works for the council.

Works are expected to be completed in mid-2020.

Project by numbers

Holiday traffic heavy on M1 from Morisset to Warnervale

Time Out for cycling and rowing challenges in Morisset

Women registering to give social soccer a go