Guneedah councillors want the town to become a "beef powerhouse" in the region.
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One councillor says the new facility need to be about more than just selling cattle and could be a drawcard for business if it's done right.
Cr O'Keefe said the saleyards played a key role in the agricultural, economic and social fabric of the shire and the community should invest in revamping the facility because of its "historic good performance".
"We are an absolute beef powerhouse in this region ... We want to invest for the future and grow and develop and maintain our leadership in this place," he said.
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Cr O'Keefe's comments came after councillors voted unanimously to approve the facility's first-ever master plan at last month's meeting.
He said the facility could be a showpiece for the shire and a "really cutting edge, fit-for-purpose" space that wasn't limited to sale days.
Cr O'Keefe said the possibilities were many and could be utilised by government and agricultural bodies for training and workshops.
"I think there's an opportunity to have a co-working space or livestock or innovation hub, which is only going to enhance what happens on sale day," he said.
"Sale days are an important weekly social outing... and a lot of people in business do the deals over lunch. There's no reason why functions can't and won't be held at a venue out there.
"If we can demonstrate that kind of intelligence and thought as a community, it will help us no end with grant applications. It's not putting our hand out and asking for free cash - it's asking for a hand-up."
There is a very clear desire that Gunnedah will be seen as a major centre for beef.
- Jamie Chaffey, Gunnedah councillor
The councillor is not alone in his passion for the undertaking.
"For some time I carried around a small copy of that plan in my back pocket ... I'm quite excited about the prospects of this plan coming to fruition; maybe not in the short-term but in the long-term and it gives me great pleasure to endorse this plan," Cr Rob Hooke said.
Cr Jamie Chaffey said the master plan was "delivering on a very clear focus of diversification in our community to make sure that ... our beef can only grow stronger into the future".
"This is one piece of the puzzle, and that is of course, not just the saleyards development but we also have aspirations and the team are working extremely hard on attracting investors for an abattoir," he said.
"There is a very clear desire that Gunnedah will be seen as a major centre for beef, not just in NSW as we currently are, but also nationally."
