Gunnedah Shire Council has been successful in securing $20,000 in funding for the exciting Cultural Precinct Pop-Up space through the state government's Streets as Shared Spaces grants program.

The council's general manager Eric Groth said this was an innovative initiative designed to create an attractive gathering place in the town centre along Gunnedah's Conadilly Street.

"This wonderful, colourful project will transform both the space in front of the Smithurst Theatre and the vacant block alongside into a vibrant meeting place," Mr Groth said.

"Our shire has faced challenging times over the past few years, and this pop-up space is part of our Invigorate Gunnedah plan to support our local people and businesses by providing an attractive place to stop and chat, a place to have lunch, a space for public performances and an area that can be used for market stalls."

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Mr Groth said it was an "awesome plan" and its design featured "new seating, a fun, painted concrete area, and planter boxes".

"Whitehaven Coal are sourcing and supplying coal washery baskets to be feature planter boxes in the project," he said.

"Council will now be looking at kicking this project into gear and is likely to employ members of our Farmer Army, started during the drought, to help out."

He said he was "really excited" about the new area, and the benefits it would bring to Gunnedah's central business area, "which is an important gathering place for our shire".

"In recent years, we have seen some popular events such as NightQuip bring a fresh energy and excitement," he said.

"This area will be designed to cater for market booths and will be a great place to hold pop-up events."

The pop-up area will be a temporary installation ahead of longer-term plans for the cultural precinct.

The council is unsure of a timeline for the project at this stage, but a spokesperson said it would be in the planning stages "very shortly".