After unrelenting pressure, the Coalition government has agreed to upgrade the Newcastle Airport Runway.

"At the 11th hour, the government has committed to this vital project, and the region couldn't be happier," Meryl Swanson, Member for Paterson, said.

The airport's runway requires an upgrade to Code E status, which will allow it to accommodate long-range, wide-bodied aircraft.

"This upgrade is a game-changer for the Hunter economy," Ms Swanson said.

"This creates an immediate and permanent stimulus in the NSW economy and will ensure more than 4,500 jobs in the Hunter."

The announcement ensures the future of the visitor economy, it will generate considerable freight activity and ensure opportunities that will deliver significant jobs and growth to Australia's largest regional economy.

"Not only will this project have wide-reaching impacts across our region's economy, it will gurantee the future of multiple sectors and allow Williamtownto become a Defence powerhouse," Ms Swanson said.

"I want to thank Newcastle Airport, its board and staff, the Hunter Joint Organisation of Councils, Business Hunter (Hunter Business Chamber), Committee for the Hunter and the community for uniting with me to ensure this win for our region.

"The Coalition Government took some convincing, but I'm pleased they have listened to the community."