A two-kilometre stretch of the highway near Dalswinton Road will be widened and resurfaced with the upgrades expected to take six months to complete depending on weather conditions.

Assistant Minister for Road Safety and Freight Transport Scott Buchholz said the Australian and NSW governments had committed $6.8 million to the upgrade as part of the national Road Safety Program.

"The Golden Highway is an important transport and freight route linking Central West NSW with the Port of Newcastle, and this section of road is used by about 3,000 motorists each day," Mr Buchholz said.

Upper Hunter MLA Dave Layzell said the project would support more than 50 jobs over the course of its construction and provide employment opportunities for local subcontractors and suppliers.

"We're increasing safety by building wider road shoulders, installing a wider centreline, rumble strips and new safety barriers," Mr Layzell said.

"Work will also be carried out to improve drainage along this section of road, which will reduce the risk of crashes in wet conditions."

Construction works will take place between 6am and 6pm on weekdays and Saturdays as well as occasional overnight work between 6pm and 6am from Sundays to Thursdays.

Alterations to driving conditions will include reduced speed limits, single lane closures and stop/slow traffic arrangements during work hours for the safety of motorists and workers.

The first phase of the Road Safety Program included $297.4 million in funding from the federal government and a further $108.9 million from the NSW government for road upgrades across New South Wales.