Over the last 12 months stretches of Bago Road have been resurfaced and another 2.8km stretch north of Milligans Road to Bluewater Close south-west of Wauchope will be the next section upgraded.

The work is part of a $2.6 million partnership between the federal government and Port Macquarie-Hastings Council.

On October 8 Port Macquarie-Hastings mayor Peta Pinson and Lyne MP Dr David Gillespie said the work would begin in the new year.

"Bago Road connects the Pacific Highway and the Oxley Highway and is a major thoroughfare for locals and a vital road for commerce in the area," Mrs Pinson said.

"The road is the lifeblood of the Wauchope community, and with our population growing at an unprecedented rate it is so important that improvements continue across all our sealed and unsealed road network.

"This road has also been identified as one of council's top 10 roads which needs upgrading and with this partnership with the federal government we are ensuring safety is a top priority.

"There has already been considerable work done on Bago Road and this 2.8km stretch is just a continuation of that."

Mrs Pinson said the upgrades are needed especially with the growing population in the wider Wauchope region.

"Road upgrades like this drive economic and employment growth, and this funding contribution is another demonstration of how strong partnerships across all levels of government is paying real dividends for our community," she said.

"Now that the funding has been allocated council will put the project out to tender and then I expect the work to begin in the new year."

Dr Gillespie said the upgrades were necessary to keep the growing population of the upper Hastings safe.

"Council has identified Bago Road as a major priority, particularly given the number of heavy vehicles which use this important local arterial road," Dr Gillespie said.

"I'm delighted to be able to announce additional funding has been secured to upgrade this important part of our region's road network.

"The upgrade builds on the recent improvements to Bago Road, with this stage including further road pavement strengthening, shoulder widening, resurfacing and line marking.

"As well as commercial trucks the road is used by cars, cyclists and motorbikes so the road needs to be safe.

"This has already occured along some sections of Bago Road but work is ongoing.

"Improving the road will also mean trucks will not need to come through the Wauchope CBD."