The project has reached the tender stage which means construction can begin early in 2019.

"The call to carry out the main works construction for the project is an important achievement for the Murrumburrah-Harden community and it's just fantastic to see this key stage being reached," Ms Cooke said.

"We will see the community benefit with a range of emergency, inpatient, residential aged care, care in the community and ambulatory care services.

"The upgraded facility will provide flexible services to better respond to the health needs of the Harden-Murrumburrah community, and enable a more efficient delivery of those services through integration, coordination, and innovation of health care."

Rosemary Garthwaite, Murrumbidgee Local Health District Regional General Manager, said the new facility would be located on a greenfield site to the south of the existing facility.

"Existing staff accommodation and Community Health buildings will be retained as part of this project and the current day care centre will be relocated as part of the early works prior to construction of the new facility," Ms Garthwaite said.

"We will keep the community and staff informed as the project progresses with community information sessions to be held in the coming months," Ms Garthwaite said.

Funding for the Harden-Murrumburrah Health Service is included in the $300 million Multi-Purpose Service Stage 5 strategy investment to provide health and aged care services for small and remote rural communities.

“This is a huge announcement for the Harden Murrumburrah residents.” Ms Garthwaite said.

“The old Murrumburrah Hospital has served the area well, but we need a more up to date, modern facility. This service is setting up healthcare for the next 20 to 30 years in this area. It is a very exciting project. We will be looking forward to attending a ground breaking ceremony early in 2019.”