The funding will be used for shed improvements including a concrete slab to expand its metalworking capabilities, facilitate office space and enclosure for computers and office equipment.

New England MP Barnaby Joyce welcomed the announcement, saying it would "greatly assist" an integral part of the local community.

"I'm pleased the Murrurundi Men's Shed will now be able to boost their shed's resources with this funding," he said.

"Belonging to a social group is vitally important for emotional and mental health.

"And, our local men's shed is an important place for men to meet up and participate in meaningful projects, particularly in regional areas like our own.

"To stay healthy, we need to do regular activities and stay connected with the people around us and this is why our local men's shed has become an important part of the New England community."

More than $10,000 in funding has been delivered for the Murrurundi shed in recent months.

In April, it was awarded a grant of $3500 for tag and test training and equipment.

Minister for Health Greg Hunt congratulated Murrurundi Men's Shed on the grant, but also on the tremendous work it continued to do supporting the health and well-being of men in the New England.

"Men are known to bottle things up but Murrurundi Men's Shed is encouraging men to reach out for the support they need for better health and wellbeing-great for them, their families and the wider community," she said.

Since 2013, the government has provided $4.92 million through the National Shed Development Program to support men's sheds across Australia.