Gunnedah Shire Council has committed a further $1.5 million to the saleyards overhaul.
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Councillors unanimously voted for the additional funds to be allocated to the $17.55 million project at Wednesday's extraordinary meeting after the state government advised the council to increase its commitment.
General manager Eric Groth said the state government had asked the council to confirm its co-contribution in writing to increase the likelihood of both state and federal committing funding to the project.
The council's initial funding commitment of $2.05 million was allocated from existing reserve funds, including the saleyards and a truck wash grant.
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If the council is successful in obtaining the proposed funding from the state government, the additional $1.5 million will be sourced through loan funding. The council was unsuccessful when it applied for federal funding under the Building Better Regions program.
Cr Rob Hooke said that the additional funds would be "well-spent" and it was "very unlikely" that the council would be in the same position again if councillors didn't support the motion.
"Not very often do you get state or federal governments coming forward with such a large contribution with only a small contribution from council," he said.
"It's an opportunity that is going to see the agricultural industries, especially around livestock, take off into a new direction. It will certainly bring us into the 21st century as far as selling is concerned.
"We have a very, very old saleyard complex. One that is now, I believe, no longer fit-for-purpose, and the new complex is really going to put us in the forefront of agriculture into the future."
Not very often do you get state or federal governments coming forward with such a large contribution with only a small contribution from council.
- Cr Rob Hooke
Cr Ann Luke said she was glad the council was "getting towards the pointy end of that long process".
"It seemed at one stage to be lovely plans that were not going to be realised ... it's wonderful to see it looks like it's going to go ahead, so well done to all involved," she said.
Wednesday's vote comes almost a year after councillors approved the saleyards precinct master plan and resolved that staff should look into options for multi-purpose use of the upgraded buildings included in the plan.
The master plan includes a state-of-the-art office, cafe and education centre, biosecurity improvements, new technology, security fencing and infrastructure upgrades.
The project will include the removal of the sheepyards, yard expansion, technology upgrades, and relocation of the car park and canteen as part of a multi-use building on the same side as the saleyards.
