A "major transport link" for agricultural produce will be reconstructed and sealed near Breeza to improve safety and efficiency.
Mystery Road will undergo a $3 million upgrade to seal and widen the remaining 8.1km of the 11km road from Waverley Road to the Kamilaroi Highway between Caroona and Breeza.
The road was identified as a key freight corridor under the Namoi Unlimited Joint Organisations' (JO) Road Network Strategy and Liverpool Plains Shire Council (LPSC) and Gunnedah Shire Council successfully applied for $2.25 million from the NSW government.
Representatives from both councils met with Tamworth MP Kevin Anderson at the T intersection near Breeza on Friday to discuss the project.
Mr Anderson said it was "an important road for the safe and efficient movement of agricultural produce" and LPSC mayor Andrew Hope said it would ease the way for B-double trucks transporting cotton to the gin in Carroll.
"This is a major transport link and the project will greatly benefit and service a lot of the shires most productive agricultural areas. It will also improve productivity for the transport industry by better interlinking these areas," he said.
"It is one of our unfunded priority projects identified in the 2019/20 Operational Plan, so we are delighted that it will become a reality.
"It complements the Williewarina Road bitumen sealing that was completed approximately 12 months ago."
Of the 8.1km, 2.7km falls in the Liverpool Plains Shire Council area and 5.4km falls in the Gunnedah Shire Council area, so the councils will contribute $750,000 to the cost, with the lion's share covered by a NSW government grant.
Cr Hope said the next steps were developing a project funding deed with the state government to be signed by both councils, and gaining survey, design and environmental approvals following the execution of the deed.
"The project is not expected to commence until early in the 2020/21 financial year. This will also allow for [LPSC] to provide an allocation in next year's budget for the co-contribution," he said.