A sum of $1,363,500 has been set aside for the works, with that amount being split between both governments.

The funding is part of a committed $191 million to build on the NSW Government's $500 million Fixing Local Roads program.

"This funding will ensure that essential, shovel-ready projects can get moving as soon as possible, while increasing job opportunities for local tradies," said Federal Member for Calare and Minister for Decentralisation and Regional Education, Andrew Gee said.

"Country roads are often riddled with potholes and require ongoing maintenance. This funding will not only improve road safety for locals, but also for those travelling to and from the area.

"As the national economy continues to open up post-COVID and remote working arrangements increase, it's never been more important to improve road safety and accessibility for locals and others travelling to and from our regions.

"This is a fantastic partnership between the Australian Government and NSW Government that opens up valuable jobs to our region over the next 12 months as councils get cracking on delivery."

The government says investment will see a total of $382 million in joint funding allocated nationally to shovel-ready projects that are able to start within the next 12 months, driving an estimated 3,500 jobs in regional NSW.

Lithgow Mayor, Councillor Ray Thompson said the funding is well directed, because roads are important for the community.

He said they would allow people and businesses to connect and survive.

"This funding is evidence of the sound working relationship that Lithgow Council has with the Australian and the NSW Governments," he said.

"The community greatly appreciates the local infrastructure that is made possible with such funding."

Applications for round two of the program will open later this year.

The extent of the project scope includes work on Dark Corner Road and Hartley Vale Road which will include: