Health minister Julian Skinner made the announcement yesterday as part of the next stage in the hospital's redevelopments, labelling the upgrade as a "dream for clinicians and the local community".

Stages three and four of the hospital upgrade will include a new emergency department, ambulatory care centre, cardiac catheterisation lab and imaging facilities.

The oncology, cardiovascular and stroke units will all be upgraded and additional car parking will be established.

Cr Dickerson said it was fantastic news not only for Dubbo, but for the region.

"More than 50 per cent of patients to Dubbo Hospital come outside the 2830 postcode," he said.

Cr Dickerson said the new upgrades would hopefully allow more procedures to be undertaken at Dubbo, rather than Orange or Sydney.

"Having to go to hospital is often a traumatic time anyway and by having to travel it makes it that much harder," Cr Dickerson said.

He said being treated at Dubbo Hospital also allowed patients to be close to their family and was one step closer for far west patients from places such as Bourke and Cobar.

"We want to make sure Dubbo is the premier hospital for the region," he said.

Dubbo Hospital recently welcomed 12 new medical interns and Cr Dickerson said he hopes the upgrade will attract even more staff.

"It's easier to attract doctors as well when you've got upgraded facilities," he said.

"Now it'll mean more doctors when they're looking for somewhere to go will put Dubbo higher up the list."

Cr Dickerson said the upgrades were needed as the infrastructure been there for a long time and the population of Dubbo and the region were continuing to grow.

He said the announcement showed the NSW government was listening to the people of Dubbo.