The Tourle Street Bridge duplication is now at the top of the priority list for funding from Infrastructure Australia.
The duplication would ease traffic congestion in the area and improve the connection to the Port and Newcastle Airport.
Port Stephens MP, Craig Baumann welcomes the news, but says more could have been done earlier.
“The former state government could have had four lanes for an extra 15 million dollars. Its now going to cost somewhere between 50-60 million dollars to just duplicate the bridge”, he said.