Deputy Prime Minister Michael McCormack said local road upgrades and work on utilities would enable the construction of the bypass, which would realign the Newell Highway two kilometres west of Parkes.

"Once complete, the bypass will reduce travel time by up to 10 minutes and increase safety by removing more than 1,200 trucks a day from the town of Parkes."

The project will also provide better connectivity for the new Special Activation Precinct on the edge of town, a key part of improving freight productivity for the transport hub.

NSW Minister for Regional Transport and Roads Paul Toole said the planned early work would be delivered by Parkes Shire Council and would support 20 council and contractor jobs.

"We know how important this bypass is to the local community and to the truckies who use this vital transport corridor - and this work moves us a step closer to construction," Mr Toole said.

"These early works include upgrading Nock Road to a bitumen surface and closing the road from direct access to the Newell Highway by making it a cul-de-sac.

"A number of utility relocations will also be completed, including upgrading water mains along the length of the footprint of the bypass," said Mr Toole.

Further work will involve:

Work is continuing on the final design for the bypass, with the tender for the work to build the bypass to go out in early 2021.

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