The inclusion of all schools and community representative Wendy Marsh were endorsed by councillors at last week's meeting, along with newly formed guidelines.

The decision follows an allocation of $20,000 for the 2019/20 financial year at the December meeting.

Local organisations can access these funds to support new initiatives that develop relationships with Gunnedah's sister cities Lane Cove and Northern Beaches in Sydney, and the Yinzhou District of Ningbo, Zhejiang Province, China.

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"It's an exciting opportunity for local schools, volunteering cultural groups and businesses, and I'm sure that Gunnedah will embrace this chance to strengthen our community and celebrate cultural diversity within the shire," Gunnedah shire mayor Jamie Chaffey said.

Cr Owen Hasler is among the councillors who support the venture.

"As our shire continues to grow and employers struggle to fill vacancies we are seeing population growth from new residents from other nations," he said.

"This new program aims to bring together interest groups in each city, facilitating an understanding between people and cultures and forging mutual opportunities for cross-cultural growth."

Grants are awarded for amounts up to $5,000 and additional funding is available for organisations that make a co-contribution of 25 per cent or more.

The expanded working group will include three Councillors, up to four representatives from all schools in the shire, a Gunnedah and District Chamber of Commerce representative, a representative from an interested volunteer group, and a general representative from the community.