The contract for the concept design and environmental assessment for the proposal of the Muswellbrook Bypass has been awarded to AECOM Australia Pty Ltd.

This marks a significant moment, with more detailed designs now set to take place ahead of the predicted 2022 construction start date.

In February of this year, NSW Nationals leader John Barilaro and Upper Hunter MP Michael Johnsen announced the state would cover the entire cost of the program, which is estimated to come in at $266 million - with $4 million of that being allocated for planning in the 2019/20 state budget.

This follows previous unsuccessful efforts to gain federal funding from the Howard, Rudd-Gillard-Rudd and Abbott-Turnbull-Morrison governments.

With this latest development, which was announced on Friday, December 6, a preferred option is expected to be developed and ready for display and community comment by mid-2020.

Mr Johnsen said he expected there to be a raft of positives to come from the bypass, which is set to be finished by 2025.

"The Muswellbrook bypass will be just over nine kilometres long and will improve travel times on the New England Highway, particularly for freight," he said.

"More importantly for the community, it will give Muswellbrook back to locals by taking through traffic and heavy vehicles out of town, which means a safer outcome for everyone."

The piece of infrastructure will be the second one in the region, with the Scone Bypass expected to open early next year.

However, a big question mark remains over when the Singleton Bypass will receive extra funding and some more significant details, although the local MP stated an update on that was not far away.

"I am also excited to be making a big announcement about the Singleton bypass shortly, which will take that project to the next step and continue the government's delivery of key upgrades for the New England Highway through the Hunter," he said.