The road runs through Port Macquarie-Hastings and Kempsey Shire local government areas.

The two councils will enter into a memorandum of understanding for the delivery and governance of the Maria River Road upgrade.

Port Macquarie-Hastings Council will include in the 2020-2021 operational plan, the start of designs and delivery of the upgrade as a multi-year project with the anticipated construction phase commencing in the 2021-2022 financial year.

Mayor Peta Pinson recognised the many years of campaigning by residents to seal the stretch.

She said $17 million would be injected into both regions over the course of a couple of years.

"It's going to be a welcome boost for both of our economies and I really look forward to this project commencing," Cr Pinson said.

She said the upgrade would mean safer travel through a beautiful part of our connecting councils.

Maria River Road stretches 30 kilometres linking Port Macquarie's North Shore to the Crescent Head area.

A report to the August council meeting said safety concerns had been identified with the existing 25km unsealed stretch of the road characterised by numerous sharp bends and the fluctuating road pavement condition, particularly after wet weather.

The sealing of the road was confirmed as an election promise by Oxley MP and then Roads Minister Melinda Pavey and Port Macquarie MP Leslie Williams.

A joint funding application under the newly announced Fixing Local Roads program was made to access the committed funding.

The application was successful in securing $17 million for the upgrade.

Port Macquarie-Hastings Council and Kempsey Shire Council then started discussions about establishing a preferred project delivery model.

It was agreed Port Macquarie-Hastings Council would be better placed to lead the project delivery as a single scope of works across both areas, given the scale of the capital works program and project delivery capabilities available at Port Macquarie-Hastings Council.

Northside Progress Association president Kingsley Searle said the progress association was over the moon about the upgrade.

"We are into the nuts and bolts of it now," he said.

Lobbying to seal the road dates back about two decades.

"It has been a long, long, long process," Mr Searle said.

He pointed to the project's road safety benefits and quality of life improvements for Maria River Road residents.

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