The teaching blocks are currently under development and are "progressing well" according to Tamworth MP Kevin Anderson.

"This upgrade will expand specialist trade workshops, provide new specialist Information and Communications Technology (ICT) equipment and refurbish generalist learning spaces to create adaptable workspaces," Mr Anderson said.

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"The new facilities will support the delivery of a wider range of courses for local students, and flexible, distance learning will be easier than ever before with an upgrade to ICT infrastructure in learning spaces.

"When completed, the upgraded TAFE NSW Gunnedah facilities will open up opportunities in key areas of skills demand and equip students with the job-ready skills local employers are calling for here in Gunnedah and across regional NSW."

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The funding was announced in June as part of the state government 2019/2020 budget.

Gunnedah Chamber of Commerce representatives and Gunnedah mayor Jamie Chaffey have both noted the benefits the upgrade would make for locals wanting to kickstart their career or upskill into a different area.

The work is expected to finish by the first day of classes in 2020.