The NSW government has engaged a design consultant for the first stage of the long-awaited Hillsborough Road upgrade.
The government said in a media statement that the $35 million road project was "moving ahead" after AECOM Australia was appointed to complete the detailed design of a new Crockett Street intersection.
The full project includes 1.8 kilometres of new road from the Newcastle Inner City Bypass roundabout to the existing dual carriageway west of Crockett Street.
The first stage includes traffic lights at Crockett Street and 700 metres of duplicated road on either side of the intersection.
Work on the first section is due to start next year and take about 18 months.
The government said the timing of the second stage was dependent on approvals and funding.
The community has been campaigning to improve Hillsborough Road for at least 14 years.
Pleas to upgrade Hillsborough Road were amplified after Coal Point teenager Jade Frith was killed after being hit by a car while she was trying to cross the road in 2016.