A former landfill site at Shortland will be remediated through clay capping after a $26 million tender was awarded for the Astra Street site.
The former landfill opened in 1974, and took waste from across the Hunter until it closed in 1995.
Remediation works will include the final capping and re-profiling of the site, drainage improvements to aid in management of surface water and sediment runoff, followed by revegetation and landscaping.
City of Newcastle said investigations undertaken last year indicated that the work needed to improve the 20-year-old capping and drainage on the 37-hectare site would be significantly more complex and costly than previously expected.
More than $18 million has been allocated in next year's draft budget for the remediation work.
City of Newcastle Acting Director of Infrastructure and Property Joanne Rigby said the project was an important priority for protecting the long-term health of the nearby RAMSAR-listed Hunter Wetlands.
"These works will allow City of Newcastle to help protect and maintain the local environment well into the future, safeguarding the water quality of surrounding wetlands and aquatic ecosystems, increasing biodiversity values and promoting long-term native vegetation growth," she said.
Two design alternatives for the capping solution were developed - a geosynthetic clay lining and a clay capping solution.
The successful tenderer, Daracon Contractors, will deliver a clay capping solution, which council said will reduce cost and risk compared to the geosynthetic clay lining solution.
Work is set to start in July and is expected to be complete by the end of 2023.
