The excavation of thousands of tonnes of historic rubbish from the former Stockton rubbish tip began on Monday.
About 3500 cubic metres of material needs to be removed from the site, north of Corroba Oval, in order to prevent it washing into the sea.
"Our priority is to ensure the environment and sea life are protected and that the area can be safely rehabilitated for future community use," Minister for Water, Property and Housing Melinda Pavey said.
The excavation work follows installation of a temporary sandbag seawall in September to secure the site while planning got underway to remove the waste.
Barrier fencing has been erected and members of the public advised not to enter the area while work is underway.
"Excavators will dig out the waste which will be tested and then taken away to Summerhill Waste Management Centre," Mrs Pavey said.
"Once the site is assessed as cleared it will be backfilled with sand and restored to its natural state."
The work is being undertaken by the Department of Planning, Industry and Environment - Crown Lands and the Soil Conservation Service with support from Hunter Water and the Environment Protection Authority (EPA).
Consultations have occurred with City of Newcastle and the Worimi and Karuah Local Aboriginal Land Councils.
