Prime Minister Anthony Albanese will inspect progress on the M1 Pacific Motorway extension to Raymond Terrace during a flying visit to the Hunter on Tuesday.
The $2.1 billion project, which includes upgrades to the surrounding network, such as the Hexham Straight widening, is due to be completed in 2028.
"It's so exciting to stand alongside the NSW Government and see shovels in the ground for a project which will be a huge benefit to travellers and truck drivers, but also to Hunter Valley families," Mr Albanese said.
"This upgrade will mean quicker travel times between Sydney and Brisbane, but most importantly - safer travel for families and workers who use this route going up and down the east coast."
The project will feature a 15-kilometre extension of the motorway, removing five sets of traffic lights and cutting nine minutes from travel times during peak periods.
New bridge crossings will be built over local waterways at Tarro and Raymond Terrace as well as an overpass for Masonite Road at Heatherbrae.
The Australian Government is spending $1.68 billion and the NSW Government has committed $420 million to the project.
"The NSW Government is proud to partner with the Commonwealth to deliver this vital infrastructure which will improve reliability and efficiency for those travelling across our state, particularly in the Hunter region," NSW Premier Chris Minns said.
"Not only will this provide smoother journeys for drivers in the area, but it will also boost economic activity and provide local jobs."
It is estimated the project will remove about 25,000 vehicles a day from key congestion and merge points between Newcastle and Maitland.
Federal Infrastructure, Transport, Regional Development and Local Government Minister Catherine King, who will join Mr Albanese at Raymond Terrace, said the project, together with the Coffs Harbour bypass, would provide the remaining major upgrades to complete a free-flowing dual carriageway route between Sydney and Brisbane.
"I'm delighted that both the Australian and NSW governments are working together to complete the job so locals across the Hunter can see an end to the traffic chaos and daily delays," she said.
Paterson MP Meryl Swanson described the project as "a big win for the region" and a vital piece of infrastructure.
"The M1 extension represents a crucial investment in our local infrastructure, enhancing economic growth and a better quality of life for our community ... and easing traffic congestion through this notoriously bottle-necked section," Ms Swanson said.
Maitland MP and NSW Regional Transport and Roads Minister Jenny Aitchison said the extension would support up to 2,700 direct and indirect jobs during construction and would transform the how people move through the Hunter.
"More than $3 billion of road projects are being funded by the Australian and NSW governments across the Hunter at the moment," she said.
"This not only boosts the regional, State and Federal economy but will improve safety and efficiency for our local and regional communities and all motorists."
Minister for the Hunter Yasmin Catley said the project would have a transformative impact on the Hunter.
"Not only will the M1 extension improve congestion and save travel time, but hundreds of good jobs will be created throughout construction," she said.
The Newcastle Herald revealed in December that the M1 extension would reduce traffic on the ageing Tarro Bridge by 36 per cent.
Documents released under Freedom of Information show the bridge has experienced significant structural deterioration over the past two decades due to increased traffic travelling across it.
